Site Improvement Bond

Site improvement bond is a government-required bond that protects the existing public property from the possible damages resulting from a private construction project. It is essentially the developer’s promise, by law, to maintain or upgrade the damaged parts of a public property and properly install improvements where needed.

 

Site improvement bonds can take many forms including certified money order, certificate of deposits (CDs) or corporate surety bond. Corporate surety bond is the preferred method, in that it is less volatile compared to the other options, although corporate surety bond might vary from state to state and through various bonding companies.

 

Site Improvement bonds should not be mistaken as the subdivision bonds. Site Improvement bonds cover existing buildings and the upgrades that will have to be done to protect the public property whereas subdivision bonds cover new buildings and issues pertaining to new buildings.