Quote:
| Originally Posted by Numbers What's the difference between a subdivision/site improvement bond and performance and payment bond. |
A subdivision/site improlvement bond is for mandatory public improvements that builders, developers, and individual landowners make to their property. The local authorities require a guarantee that the landowner completes the improvements. A subdivision bond obligates the principal and the surety to complete subdivision improvements.
A Performance Bond guarantees the faithful performance of the contract and payment of materials and labor by the contractor to all subcontractors and material suppliers. Generally a performance bond is required by municipalities who are hiring contractors to do work for them. The bond is submitted by the winning bidder upon award of the contract. The Performance & Payment Bond are typically issued together, as they are so closely related.
For more information about contract bonds, please visit the following site:
Surety Bond Types: Contract Bonds