Pinehurst Land Improvement Bond

Pinehurst North Carolina Land Improvement Bond

Developers in the Village of Pinehurst, North Carolina, are required by the Development Ordinance to ensure that all of the improvements in a project will be built on time to plan specifications. Jet Insurance Company offers the Land Improvement Bond to contractors and developers as a financial guarantee to Pinehurst all future installation of improvements, and receive their final plat recording or Certificate of Occupancy. Jet acts as means of financial guarantor in this regard, ensuring the Village of Pinehurst that they will be reimbursed if they are forced to complete the improvements on behalf of developers.

PURCHASE PINEHURST LAND IMPROVEMENT BOND

Jet is taking on the surety bonding process to get you the bond you need, when you need it, and while cutting out the middlemen who cost you more in fees and commissions. Jet is the direct carrier, so we are with you throughout your project, even helping you defend against claims.

How Is the Cost Determined for the Land Improvement Bond?

The Village of Pinehurst requires that permit bond amount to be 125% of the estimated cost to complete all required improvements. The developer’s certified engineer must generate the estimate, and it must be approved by the Village’s Engineer.

Jet’s cost for the bond will be a small percentage of the total bonding amount. Jet’s underwriters will work with you to compile several factors (ie. personal credit of the owner, potentially prior projects completed, financial strength of the business, etc.) and determine the cost of your specific bond.

Can Jet File the Bond With the Village of Pinehurst Me?

Absolutely! Once you have purchased your bond, Jet will immediately ship the original bond to the Village of Pinehurst for you. You will receive an electronic copy of the bond via email for your records as well.

If your preference is to receive the original bond and mail it to Pinehurst yourself, you can select that option at checkout. To ensure your bond is properly filed, please make sure it is delivered to the following address:

Village of Pinehurst
Planning and Inspections Department
395 Magnolia Rd
Pinehurst, NC 28374

Can I Cancel My Land Improvement Bond?

Once posted, no you can’t. This bond for site improvements is in force with the Village Planning and Inspections Department until released after final inspection of improvements. The bond cannot be cancelled at any time by the developer or by Jet prior to that release.

How Does a Developer Avoid Bond Claims?

Simply put, developers can avoid a claim against their bond by building the improvement elements of their approved plan, within the committed time frame. This means that the following key things must happen at the time of final inspection:

  1. All improvement elements are complete with construction
  2. Improvements in the approved preliminary plan match the final map of the subdivision.
  3. All work passes final inspection by Village staff for quality and adherence to code
  4. As-built drawings and plans of all water system, sewer system, streets, sidewalks and storm drainage system facilities must be provided to the Village Engineer

Bond claims may arise when a developer abandons the project, departs from the approved subdivision plan in their actual construction, does not meet subdivision construction standards, or does not complete the improvements within the agreed timeline. 

What Happens If I Get a Bond Claim?

If the Village of Pinehurst Engineering Department determines that the developer has defaulted on its commitment, it may process a claim directly with Jet. To assess the validity of the claim, Jet will investigate the circumstances, and defend you as much as possible. 

If after investigation, the claim is judged to be valid, Jet is obligated under the Pinehurst Development Ordinance Section 9.17.1.26 to pay the claim up to the penal sum of the bond. Jet as the surety carrier acts as a line of credit for the Village, and the developer (the “principal”) remains responsible for their commitment to the Village and must reimburse Jet for the claim payout paid.

What Is the Purpose of the Land Improvement Bond?

The Land Improvement Bond, as it is defined in the Development Ordinance, is a performance guarantee to the Village of Pinehurst that developers will build to the Village’s approved plans and complete their work in a timely manner. The bond establishes a third party (Jet) as fiscally responsible in the event the Village would need to complete improvements on behalf of a defaulted developer.

The bond provides an opportunity to developers to record the subdivision plat and receive the Certificate of Occupancy before all improvements are complete. Homebuyers gain from this provision as well, as this ensures the infrastructure quality of their subdivision.

How Does the Application Process Work With Jet?

At Jet, we have stripped away as much of the red tape as possible so you can apply for your bond hassle-free. To start, we will need to collect some basic information online about your business. With this, we can evaluate your application and get back to you promptly with a quotation for your bond.

With larger scope projects come higher bonding requirements, and Jet may need to ask for  additional information (see example items below) in order to provide your quote:

Once you complete your purchase and pay your premium, a purchase receipt and a copy of the bond will be available for your records.

PURCHASE PINEHURST LAND IMPROVEMENT BOND

When Does the Land Improvement Bond Obligation End?

Once the permit bond is placed in force, it cannot be released or canceled until all required site improvements in a subdivision are complete. Liability for the developer and surety are released 30 days after recommendation from the Village Engineer following a successful inspection.

Per the Development Ordinance, the improvements must be installed within five years of the establishment of the performance guarantee (the bond). Jet underwrites the Land Improvement Bond in one-, two-, or even three-year increments. The bond will need to be renewed if the project extends past the original purchase term.

Are There Other Bonds That a Developer Needs?

Developers should take particular care 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.

Pinehurst North Carolina Land Improvement Bond Form

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: