Who Needs Subdivision Bonds?

Subdivision bonds are essential for:

• Developers building residential, commercial, or mixed-use communities.
• Contractors who are responsible for public infrastructure improvements, such as roads, sidewalks, or drainage systems.
• Municipalities or governing bodies ensuring project completion and compliance with regulations.

Why Developers Choose Merchants for Subdivision Bonds

At Merchants Bonding Company^TM, our Specialty Solutions team takes a practical, common sense approach to underwriting subdivision bond requests. We provide flexibility by considering both business and personal assets, enabling us to tailor a program that meets the unique needs of developers.

Our expertise in subdivision bonds, paired with tools designed specifically for these projects, ensures that we are a trusted and ready market. At Merchants, our agent partners and their developer clients can expect a straightforward and efficient process.

• Expert Underwriting Team - Specialists dedicated to subdivision bond solutions.
• Simplified Process - A streamlined subdivision questionnaire to collect only the most relevant information.
• Convenient E-Signature Options - Secure indemnity agreements efficiently.
• Instant Subdivision Bond Approvals Up to $750,000.
  • Merchants' Rapid Access Program (RAP) for Developers offers a fast and efficient process for subdivision bond needs up to $750,000. This program is designed to expedite approvals and streamline bonding requirements for qualifying developers and bond requests, ensuring they can secure the necessary surety credit without delays.

Documents required to establish surety credit for developers:

• Completed Request for Subdivision Bond Credit questionnaire.
• Company financial statements for the last three years.
• Sales and work-in-progress reports for ongoing projects.
• Personal financial statements from all principals.
• Project details if specific bonds are required.

How To Get a Subdivision Bond

Securing a subdivision bond is an essential step for developers and contractors working on public infrastructure projects within a subdivision. Merchants makes the process smooth and efficient, helping you get the bond you need to keep your project on track.

Steps to Get a Subdivision Bond:

1. Understand the Requirements - Check with your local municipality or governing authority to confirm the specific subdivision bond requirements, including the bond amount and scope of obligations.

2. Work with a Surety Bond Expert - Use our Find an Agent tool to connect with an experienced surety bond agent near you. They will guide you through the process, assess eligibility, and help secure the best terms.

3. Complete an Application & Underwriting Review - Submit a bond application along with financial documents, such as business financials and project details. Your surety agent will assist in the process, ensuring accuracy and completeness. Our underwriting team will review your financial strength and project scope for approval.

4. Receive Your Bond & Start Your Project - Once approved, you'll receive your subdivision bond, which must be submitted to the governing authority before beginning work. This bond guarantees that public improvements—such as roads, sidewalks, and utilities—will be completed as required.

If you have questions about subdivision bonds, contact Merchants' Specialty Solutions team—our experts are ready to help. 

 

Merchants has become my go-to market for subdivision bonds. It has been a great experience. The team has been wonderful to work with and the process is very easy.