Subdivision Bonds are required for any work that involves property or land that stretches beyond the scope of the building that is being worked on. This can include public sidewalks and public utilities such as water pipes, gas lines, public plumbing drains, and more. The subdivision bond ensures that the construction professional will follow local laws and regulations to ensure the proper procedures are followed. These procedures will be outlined in the contract upon which the surety bond will be written. Almost all government projects will require a subdivision bond.

Claims

A claim can be made on the bond if there is any breach of contract by the construction professional. If the construction professional cannot fight the claim, then the bond will pay for the losses accrued from the breach. They will then have to pay back the bonding company.