Subdivision bonds are frequently requested. A Subdivision Bond is an obligation in favor of a municipality, county or state government as the Obligee. The Developer or General Contractor typically serves as the Principal. The Subdivision Bond indemnifies the Obligee against the builder’s failure to install on and off-site improvements required by local building codes. These codes include construction of streets, curbs, sidewalks, water, sewer, natural gas, electrical work, connection work, creation of drainage basins, etc.
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