Surety Bond Education

Surety Bond Education

What Is A Subdivision Bond?

A Subdivision Bond is a type of contract surety bond.  A Subdivision bond guarantees public improvements will be completed pursuant to the development agreement between a governing municipality and a developer. For example, if a developer wants to take a piece of raw land and break it up into residential lots for homes he or she would engage in an approval process with the governing city of county.   A civil engineer would draw up a site plan including public improvements.  Examples of public improvements are: Storm or sanitary sewer Water main Streets Curb & gutter Fire protection such as […]
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Maintenance Bond Versus Performance Bond

What is the difference between a Maintenance Surety Bond and a Performance Surety Bond? A Maintenance Surety Bond provides protection against defects on construction improvements already put in place.  This work has been accepted by the owner as fully completed by required standards and specifications.  And the Maintenance Bond will provide financial guarantee should any defects arise results from materials or workmanship.  From a risk standpoint: The primary concern of the work actually getting done has been alleviated and the maintenance period could be interpreted as less risky since the work was inspected and accepted by the owner’s engineer. A […]
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What Is A Maintenance Bond?

A Maintenance Bond is a type of surety bond guaranteeing good condition of constructed improvements for a period of time after acceptance of the work. When Are Maintenance Bonds Required? We commonly see Maintenance Bonds required in conjunction with commercial development projects. As part of the scope of the project infrastructure improvements such as water/waste water service, curb inlets and streets are constructed. These improvements are turned over to the municipality after acceptance so they require a Maintenance or Warranty period to make sure those assets don’t deteriorate due to poor workmanship or poor materials.  A standard Maintenance period is […]
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City of San Antonio Demolition License Bond

If you are a Demolition Contractor wanting to work in San Antonio, be sure to register with the city by completing their demolition contractor license registration application and provide the required $5,000 City of San Antonio Demolition License Bond and insurance. You must have your original bond and insurance in place before they issue permits. Click here to visit the City of San Antonio website for their application and more information. Remember the city will require original documentation at the time of application for city license registration, so let us help you prepare by getting your bond in place. The bond must […]
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What is a Supply Bond?

A Supply Bond is a type of contract surety bond. Specifically it is used to guarantee a contract for supply of materials.  For example, a construction project may require purchase of components that are high-dollar, specialized, and/or critical to completion of the project.  A Supply bond could help manage the financial risk of not getting your delivery on time or at all. Is a Supply Bond Different Than A Payment & Performance Bond? Unlike a Performance bond, which would include labor exposure and execution of construction, a supply bond guarantees delivery of materials or equipment from point A to point […]
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What is a Bid Bond?

What is a Bid Bond?

Public owners such as the federal and state governments, counties, cities, school districts and the like take in our tax dollars and some of it, if we’re lucky, goes toward capital improvements that we get to use every day.  These public owners have a duty to taxpayers to get the best value available and so they often offer projects under competitive bid letting structure. Financial Security The owner will prepare plans, specs, and an engineer’s estimate for use by contractors as a basis for their estimate or bid.  Once the contractor has prepared their bid, they submit to the owner […]
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