How to cancel bond?

[Carboholic]

I have a subdivision bond that's renewing next month. The required work is now complete. How do I go about cancelling the bond so that it does not renew for another year?

[Admin]

Technically speaking, a subdivision bond can not be cancelled, only released. Simply having the work complete does not let you off the hook. In order to release the bond, you must obtain in writing from the obligee that the work is completed satisfactorily. Once the bond is release, the surety will no longer pursue you for renewal premiums.

If the work is partially complete, you can ask the obligee for a reduction in bond requirement, as there is no point in paying bond premium for work that has already been completed to the obligees standards.

Our agency always contacts clients months in advance to subdivision renewals to give adequate time to obtain a release or reduction of bond.