In the Town of Huntersville, North Carolina, the Land Development Services Division requires developers to obtain a surety bond for the following scenarios in their projects:
This bond provided by Jet Insurance Company serves as a means of financial guarantee from developers to the Town of Huntersville that all required improvements will be completed, on time and to the town’s standards, and that all completed road and BMP work has adequate financial coverage for maintenance.
The cost of the bond will be a small percentage of the total bonding amount, which is determined by estimating the cost to complete all required improvements. This estimate must be generated by the developer’s certified engineer or contractor, and must be approved by the town’s Land Development Division. The town provides a Bond Estimate Form Spreadsheet which developers may use based on the itemized costs of the improvements. That estimate is then reviewed by the town staff for adequate coverage of all plan elements.
Once the bonding amount is determined, the bond cost with Jet can be delivered. The bond can be purchased for as little as $100, based on the amount of the bonding requirement. The personal credit and potentially the financial strength of the developer can also factor into the eligibility and price of the bond. With Jet, you get the benefit of working directly with the underwriter determining the eligibility and rate on the bond.
Most certainly! Once you purchase your bond, Jet will immediately ship the signed and sealed original version of the bond to the Huntersville’s Land Development Division 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, then you can select that option at checkout. Developers may request this in order to send the bond with other paperwork to the town. Please note the bond must be filed with the city at the following address:
Town of Huntersville
Attn: Bond Administrator Tricia Staples
105 Gilead Road, Ste 300
Huntersville, NC 28078
Unfortunately, no. The Land Development Bond is considered continuous until released after final inspection of all improvements by the Town of Huntersville, so the bond cannot be cancelled at any time by the developer or Jet.
Developers can avoid a claim against their Land Development Bond by delivering on their commitment to the Town of Huntersville: that is, comply with building standards and all applicable codes, and finish the improvements in the plan on time. This means that when the completed work is inspected:
For construction bonds, if the developer has not completed the improvements in the time specified in the bond or departs from the approved subdivision plan in their actual construction, the Town of Huntersville may draw upon the Land Development Bond to either complete or repair the improvements.
For maintenance bonds, Land Development staff may file a claim against the surety bond if the completed (or uncompleted) road work or BMP installation requires maintenance, forcing the Town of Huntersville to pay for such maintenance.
If the City of Winston-Salem Engineering Department finds discrepancies during their final inspection, and the developer is unable or unwilling to
If the town’s Land Development staff discovers discrepancies in final inspection and the developer is unwilling to rectify them, or the project is abandoned entirely, the town may process a claim directly with Jet. Per the terms and conditions of the bond, Jet will have fifteen days to investigate the validity of the claim, in which Jet will defend you in so far as that is possible.
If the claim is deemed valid, Jet is obligated per the bond agreement and Town Engineering Standards and Procedures Manual (ESAPM) to pay the claim up to the penal sum of the bond. It is important to note that the surety acts as a line of credit in this respect, and the developer is responsible for to uphold their contractual obligation and must reimburse Jet for the amount paid out for their inability to do so.
Jet provides the Land Development Bond for developers to furnish the Town of Huntersville with a financial guarantee for public improvements built in its land development projects. This ensures that subdivisions will be built to the standards of the ESAPM and in a timely manner. The bond ensures the Town of Huntersville will be reimbursed, should the city need to finish public improvements on behalf of the developer, or perform maintenance on their work in the period following construction.
The bond also offers an advantage to developers who wish to record their subdivision plat and receive certificates of occupancy prior to project completion, and at the same time protects consumers by guaranteeing the quality of their subdivision.
One of our underwriters will review your initial online application which only takes minutes to complete. The underwriter may need more information such as financial statements, project specification and funding details based on the size of the bond required.
Once approved, you will receive an email with a link to purchase the bond online. With payment made you will receive a copy of the bond and the original will be sent out in the mail.
Pursuant to the ESAPM, the Land Development Bond can be written for a minimum of six months, to a maximum of two years, and is continuously in force until released by the Town of Huntersville Bond Administrator.
For Construction Bonds, the Bond Administrator will release the developer and Jet once a final inspection is performed and all improvements pass inspection.
For Maintenance Bonds, liability is released once the end of the bonding period is reached. Maintenance bonds have typical minimum time periods of one to two years depending upon the improvement.
Bonds are available from Jet in one, and two-year increments. The bond will need to be renewed if the project extends past the original purchase term.
The bonding requirements for a developer in Town of Huntersville are encompassed by the Land Development Bond (construction and maintenance categories), so no other bonds are required by the Town.
Developers should however double-check to ensure their contractors adhere to the State of North Carolina’s various licensing requirements, and the associated surety bonds. Check out other North Carolina construction bonds by clicking here.