A public improvement bond guarantees the construction of infrastructure that will ultimately be owned, operated, or maintained by a public agency. These bonds are required in some jurisdictions in addition to—or in place of—subdivision bonds, particularly when the improvements include facilities like parks, public buildings, water and wastewater treatment, or major arterial roadways.
Public improvement bonds are commonly required when a private developer is building infrastructure that will be dedicated to a public agency, when a contractor is performing work directly for a municipal owner, or when a redevelopment agreement requires the developer to deliver public-facing improvements as part of an entitlement package. Some jurisdictions use the term "public improvement bond" interchangeably with subdivision or site improvement bond.
Public improvement bonds and traditional performance bonds both guarantee project completion, but they differ in who the obligee is and how the work is administered. A standard performance bond is issued to a project owner (often a municipality) on a specific construction contract. A public improvement bond is more often issued to a planning or public works department as a guarantee that a developer will install infrastructure that will eventually be transferred to the agency.
Underwriters assess the applicant's financial statements, the engineer's cost estimate for the public improvements, the project schedule, and the source of construction financing. Personal indemnity is generally required, and on larger bonds the surety may request audited financials and tax returns.
Complete the form below to start your public improvement bond application. Our team will quote your file with multiple A-rated sureties to find the best terms.
Fill out the questionnaire below and we'll quote your bond with multiple A-rated surety carriers. Most applications receive a response within one business day.