What a subdivision bond is
Cities and counties often require a developer to bond the public improvements in a new subdivision or site plan, like streets, sidewalks, storm drains, sewer and water lines, before they approve the final map or permits. The bond guarantees the improvements are built to the agency's standards.
In Georgia
Georgia has no statewide subdivision bond amount. Cities and counties set it in their subdivision regulations. For example, the City of Marietta accepts a performance bond of at least 110% of the estimated cost of the improvements, and requires a 12-month maintenance bond of 10% of the improvement cost when the final plat is submitted.
- Marietta's bond form also covers payment of people who supply labor and materials for the improvements.
You need this bond if you're
- A developer or subdivider recording a final map
- A builder with a site plan that includes public improvements
- A contractor building improvements under a developer agreement
- An owner required to bond grading or erosion control
What the surety looks at
The project, the engineer's cost estimate for the improvements and the developer's finances. Larger projects need financial statements.