Site improvement bonds are similar to subdivision bonds with one key difference. Subdivision bonds refer to new buildings, whereas Site Improvement Bonds refer to structures that are currently standing. If the construction professional works on a previously constructed building, then they may need a Site Improvement Bond. The project developer will determine if a site improvement bond is mandatory for the particular project. Most, if not all, government projects will require a site improvement bond.
These bonds are created to protect the project developer from contract default or other problems that may come up during construction. A claim can be made against the construction professional if they have been found to have breached the contract. The contract specifics will be written within the bond.
Bonds of this caliber are determined by the scope of work that is involved in the project. This includes the size of the job, the amount of coverage required, the business professional’s level of experience (determined by length of time in industry and work record), credit scores, and other financial credentials.