Surety Bonds
What Is a Subdivision Bond for Contractors?
A subdivision bond (site improvement bond) guarantees that a developer or contractor will complete public infrastructure improvements required by a local government as a condition of subdivision approval.
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What is a subdivision bond and who needs one?
When a developer gets approval to subdivide land, local governments typically require completion of public improvements — roads, curbs, gutters, sidewalks, utilities. A subdivision bond guarantees these improvements will be completed within a specified timeframe.
The obligee is the local government (city, county, municipality). The principal is the developer or contractor. The bond amount is typically 100–150% of the estimated improvement cost.
Subdivision bonds are common in residential and commercial development. They’re obtained similarly to performance bonds — through a surety based on financial strength and credit. Trade Safe can arrange subdivision bonds for developers and contractors in all states.
Need a surety bond fast?
Trade Safe helps contractors get bonded same-day in most cases. We work with multiple surety markets to find the best rate for your situation.