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 Maryland
Maryland counties and cities set subdivision improvement security in their own codes. For example, Washington County has the developer sign a Public Works Agreement backed by a performance bond to the County Commissioners, guaranteeing the subdivision infrastructure is built under County Policy S-3.
- Under the Washington County form, a claim on the bond must be brought within three years of the date the bond is signed.
- Washington County also uses a separate maintenance bond after it conditionally accepts the infrastructure.
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.