Durham, North Carolina Land Development Bond

In the City of Durham, North Carolina, the Unified Development Ordinance requires subdivision developers to post a performance guarantee bond known as the Development Infrastructure Completion Bond (also known as the Land Development Bond) if they are seeking final plat approval prior to completing the infrastructure improvements in their plan. For example, a developer may be responsible to build a subdivision that includes private improvements such as landscaping and recreational facilities, or infrastructure improvements such as streets, sidewalks, and stormwater devices. This bond from Jet Insurance Company serves as a means of financial guarantee for the City of Durham that all required improvements will be completed by the developer to the standards of the city and county’s Unified Development Ordinance.

APPLY FOR A LAND DEVELOPMENT BOND

Expedite your bonding process with Jet, who has cut out middlemen brokers and agents, getting the bond direct to you.

How Is the Cost Determined for the Bond?

The cost of the bond with Jet will be a small percentage of the total bonding amount or limit. This limit is calculated by the City as 125% of an estimated cost to complete all required improvements both public and private, as well as administrative costs, inflation, and contingency. This estimate will be subject to approval by the Public Works Director.

The personal credit, experience, project description and the financial strength of the developer may factor into the eligibility and price of the bond. It all really depends on the size of the bonding limit what will be needed for pricing the bond.

Can Jet File the Land Development Bond to the City of Durham for Me?

Yes, Jet can! Once you purchase your bond, Jet will immediately ship the original bond to the City of Durham for you. An electronic copy of the bond will immediately be emailed to you for your records as well.

If you would like the original bond mailed directly to your location to file yourself with Durham, then you can select that option at checkout. Please note the bond must be filed with the city at the following address:

City of Durham Public Works Department
101 City Hall Plaza
Durham, NC 27701

Can I Cancel My Durham Land Development Bond?

Not without permission from Durham. The Land Development Bond is considered continuous until released after final inspection of improvements, so the bond cannot be cancelled at any time by the developer or Jet.

How Does a Developer Avoid Bond Claims?

Developers must complete all public and private improvement elements of their approved subdivision plan, within the committed duration of project time. This means that at the time of final inspection, three conditions must be met:

  1. All infrastructure improvement elements are complete
  2. Work is completed in accordance with the approved preliminary plan and the final map of the subdivision.
  3. All work passes final inspection by City of Durham inspectors

Should a developer abandon the project, depart from the approved subdivision plan in their actual construction, not meet subdivision construction standards, or not complete the improvements within the agreed timeline the City is going to have a problem on their hands. First stop will be the developer to make the situation right. If the developer cannot or refuses to make the obligatory improvements in the time specified in the bond, the City of Durham may draw upon the surety bond to pay for completion of the improvements. This is why Jet and other surety carriers want to ensure developers have the experience and funding to complete the projects they undertake.

What Happens if I Get a Bond Claim?

If the City of Durham Public Works Department notifies the developer of a discrepancy in the improvements, and the developer is unable or unwilling to rectify the issue, the city may process a claim directly with Jet. Should the developer be facing an unlawful or fraudulent claim, they should present all applicable evidence to Jet in a timely manner. Jet will investigate the circumstances, and defend you as much as possible. 

If the claim is deemed valid, Jet is obligated under the Unified Development Ordinance Section 12.11.2 to pay the claim up to the total amount of the bond. It is important for developers to note that the surety company acts as a creditor in this respect, and the developer is responsible for their debts (or debts created to the City) and must reimburse Jet for the amount paid to Durham.

What Is the Purpose of the Land Development Bond?

The Land Improvement Bond exists to provide a performance guarantee to the City of Durham that subdivisions will be built in accordance with the city’s approved plans, on time, and in accordance with the building standards. The bond ensures that the city will be reimbursed by a third party surety (Jet) for all costs, should it need to finish public or private improvements on behalf of the developer.

The bond also offers an advantage to developers who wish to record their subdivision plat and receive a certificate of compliance prior to project completion, often allowing developers to begin selling units of their subdivision.

How Does the Application Process Work With Jet?

Jet streamlines the application process, so you can apply for your bond hassle-free by providing some basic information about your business. Once you provide this information, we will evaluate your application and one of our underwriters will get back to you. 

As bond limits become larger Jet may need the more information regarding the project, experience and financial capacity of the developer. Once approved you will receive your quote via email with a link to securely purchase the bond.

When Does the Durham Land Development Bond Obligation End?

The Development Infrastructure Completion Bond is considered continuous until all required public improvements for a subdivision are completed. Liability for the developer and surety will be released once a project has passed final inspection and received release from the City or County of Durham. In the event that the improvements are not complete at the end of the original bond duration and the developer is showing “good faith progress toward completion”, an extension is allowed in the Unified Development Ordinance. 

The bond will need to be renewed if the project extends past the original purchase term, and additional premium will be charged for additional time or a newly underwritten bond.

Are There Other Bonds That a Principal Needs?

When building a subdivision in Durham County, developers may also be required to secure the Stormwater and Erosion Control Surety Bond. 

Review Jet's full list of North Carolina Construction Bonds.

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: