Subdivision Bond

In California, contractors and developers working on new subdivisions or public infrastructure improvements are often required to post Subdivision Bonds or Site Improvement Bonds before construction can begin. These bonds guarantee that the promised work — streets, sidewalks, grading, utilities, landscaping, and more — will be completed properly and in compliance with local government requirements.

At JRG Surety, we specialize in helping California contractors secure the subdivision and site improvement bonds they need — quickly, competitively, and with expert guidance every step of the way.

A Subdivision Bond (also known as a Site Improvement Bond) is a type of surety bond that:

• Guarantees completion of public improvements required as a condition of a land development or building permit.
   
• Protects public agencies (like cities, counties, and municipalities) from financial loss if the developer or contractor fails to complete the work as agreed.
   
• Ensures compliance with local codes, standards, and approved project plans.
   

Once the bonded improvements are completed and accepted by the public agency, the bond is typically released.

Subdivision and site improvement bonds are commonly required when:

• Developing a residential subdivision, commercial center, or industrial park.
   
• Making off-site improvements such as roads, sidewalks, sewer lines, water systems, and drainage facilities.
   
• Pulling building permits that involve public improvements.
   
• Completing deferred improvement agreements under a land use permit.
   

Cities and counties will not issue final approvals, record maps, or allow occupancy until the appropriate bonds are posted.

Depending on the project and jurisdiction, contractors and developers may need multiple bonds, including:

• Performance Bond: Guarantees completion of the work according to approved plans.
   
• Labor and Materials (Payment) Bond: Guarantees payment to subcontractors, suppliers, and laborers.
   
• Grading Bond: Covers grading and earthwork improvements.
   
• Erosion Control Bond: Ensures compliance with environmental regulations regarding stormwater runoff.
   
• Monumentation Bond: Covers placement of survey monuments.
   

Each bond type protects the public agency and ensures that improvements are properly installed and paid for.

• Bond Amount:
  Usually based on 100% to 150% of the estimated construction cost of the public improvements.
   
• Bond Premium (Cost to You):
  Typically ranges from 1% to 3% of the bond amount, depending on underwriting factors like:
   
  • Contractor or developer experience
     
  • Financial strength
     
  • Project size and complexity
     
  • Surety market conditions
     

At JRG Surety, we work hard to find you the most competitive rate available through our network of A-rated surety companies.

✔ Fast Turnaround – We know permitting deadlines are tight. We move quickly.
✔ Experienced in California – We understand the specific requirements of local agencies.
✔ Multiple Surety Options – We shop around to get you the best bond terms.
✔ Flexible Solutions – Whether you’re a large developer or a first-time builder, we can help.
✔ Clear Communication – No surprises. We explain every step of the process.

When public agencies are depending on you, you can depend on JRG Surety to deliver.

Contact JRG Surety Today!

Whether you’re developing a small residential tract or a large commercial site, we can help you secure the subdivision bonds you need to move forward with confidence.

📧 Email: david.sandiford@jrgsurety.com
📞 Call: 949-413-9439
🌐 Visit: www.jrgsurety.com