An In Depth Look At Subdivision Bond
If you own a construction business and plan on bidding on a project that involves a subdivision development, you may need to get bonded. There are many provincial regulation compliance that you must adhere to, which will involve completion of the project in a timely manner. This also includes financial responsibility and the completion of mandatory public improvements involving sidewalks, sewers, gutters, streets, and drainage systems. A project owner may require a subdivision bond, just to ensure themselves and the local authority that all requirements will be met accordingly.
Once the bond becomes an official document, it must be posted by the Construction Company or developer, in order to obtain a legal building permit.
Subdivision Bond VS Site Improvement Bonds
It is important to note the differences in subdivision and site improvement bonds. A subdivision bond involves the construction of a new residential building structures, whereas, a site improvement bond involves making developmental improvements on building structures. When generally comparing the two, the differences become very obvious.
A surety company will take several steps to determine eligibility of applicants. With this being said, each applicant must go through the same process, in order to get approved for a subdivision bond. Now, this does not necessarily mean that the process is identical, but only that it is very similar in nature. It is obvious that construction companies that hold a lengthy tenure in the industry will definitely be able to obtain these bonds much easier. Of course, if you are new to the industry, you should not immediately be ruled out for a surety bond approval.
In order to get the fairest treatment and most competitive rates, you will need to do a bit of comparison shopping. This definitely applies to upstart businesses that are just entering the construction industry. There are various surety companies waiting with their door open to serve you, so never stop searching, until you find an underwriter that will treat you fairly and honestly.
One of the best ways to get the lowest possible annual premium is with free quotes. You can find these on various online surety company websites and are absolutely free to take advantage of. You will need to complete the quote form appropriately and provide the surety with accurate data, so that you can get the most accurate rate possible. Once you complete and submit the form, you will receive a quote within 2-5 minutes. You should note that these quotes may vary from the actual process, but the variance should not be too significant.