Raleigh Land Improvement Bond

Raleigh North Carolina Land Improvement Bond

In Raleigh, North Carolina, land developers are required by the Unified Development Ordinance to provide the city a performance guarantee in the form of the Raleigh Land Improvement Bond when building public improvements as part of a subdivision plan, and attempting to record their plat or receive a Certificate of Occupancy (CO) prior to completion. A developer’s subdivision design may include certain public improvements such as trees, sidewalks, and curbs as part of the approved subdivision plan. The developer may wish to record their plat and receive a CO to begin selling homes, but do so prior to passing final inspection which would require this permit bond offered by Jet Insurance Company.

PURCHASE RALEIGH LAND IMPROVEMENT BOND

Contractor permit bonds in North Carolina are all about repeat customers for Jet. Get approved for your first bond here and watch how easy bonding becomes for all future projects.

How Is the Cost Determined for the Land Improvement Bond?

Jet’s bond cost is always a small percentage of the  total bonding limit, as dictated by the City of Raleigh. Total bonding limit or amount is determined in Raleigh by making an informed estimate of the cost to complete all required improvements, then adding an additional 25% in contingency. This 125% estimate must be generated by the developer’s certified engineer or contractor, and then be reviewed and approved by the city’s Engineering Services Director. The city provides developers with an online estimating tool to compile itemized costs of the improvements and produce their estimate. 

Once reviewed and approved by Jet, the bond cost can be purchased for as little as $100, of course that would be for smaller bonding limits. In order to provide the best possible quotation for your particular bond, Jet may need to factor in some additional information such as personal credit score and the financial strength of the contractor business. 

With Jet, the process of getting your bond is re-imagined to get you the bond you need, as fast as possible, with no headaches. This gets you back to what you do best, and let’s Jet cover the surety bonding. (That’s what we do best.)

Can Jet File the Bond to the City of Raleigh for Me?

We sure can! Once you have completed your purchase, we ship the original bond form to Raleigh’s Development Services Department for you. You will receive a copy of the bond to keep for your records as well.

Many carriers charge you shipping fees to send you the bond, and then leave shipping the bond to Raleigh up to you, at your expense. We don’t play that way at Jet!

If you prefer to receive the original bond and take responsibility for the shipment to Raleigh, you can select that option when you check out. To be properly filed, all paperwork must be delivered to the City of Raleigh at the following address:

City of Raleigh Development Services Dept.
ATTN: Debbie Wyatt
One Exchange Plaza,
Suite 500
Raleigh, NC 27601

Can I Cancel the Land Improvement Bond?

No, unfortunately. When the Land Improvement Bond is filed, it must be released following a successful final inspection of improvements by the City. Neither Jet nor the developer can cancel the bond prior to liability release.

How Does a Developer Avoid Bond Claims?

To avoid a bond claim, developers must simply build in accordance with the Unified Development Ordinance and the Street Design Manual and complete all public and private improvement elements of the subdivision plan, on time. Easy, right? This means that at the time of final inspection, the following conditions must be met: 

  1. The developer has completed all improvements
  2. The work as described in the approved preliminary plan matches the final map of the subdivision.
  3. Accurate as-built drawings are provided to the City reflecting the improvements
  4. The improvements pass a final inspection by Raleigh’s Development Services Director

Bond claims may arise when a developer’s completed work does not exactly match the approved subdivision plan, the work is below construction standards, or the improvements are not complete by the deadline agreed to in the bond. If the developer has not completed the improvements in the time specified in the bond, the Engineering Services Director may pursue a portion or all surety bond penal sum to pay for completion of the improvements.

What Happens If I Get a Bond Claim?

If the city’s Development Services Director discovers discrepancies, the city may elect to process a claim. Jet will do our part to investigate, and defend your position as much as we can. 

If it is clear that the claim is valid, Jet is obligated as a fiscally responsible party under the Unified Development Ordinance to pay up to the full bond amount. In this respect, Jet’s bond acts as a line of credit for the developer (or “principal”); the developer remains responsible for the actions or lack thereof that resulted in the claim. The developer is required to reimburse Jet for all payments made to the City of Raleigh on their behalf.

What Is the Purpose of the Land Improvement Bond?

The Land Improvement Bond exists to provide a performance guarantee to the City of Raleigh, ensuring that developers honor their commitment to build their subdivisions to match the plans shown to the city. The bond that Jet Insurance Company provides gives the City of Raleigh the necessary fiscal promise that all required improvements will adhere to the city’s standards, also ensuring the City’s reimbursement in the event that the developer does not complete the project.

The bond 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 the public by guaranteeing the quality of their subdivision.

How Does the Application Process Work With Jet?

Jet optimizes the application process to save you time, so you can apply for your bond with minimal red tape. We will need you to provide some basic information about your business, then we will evaluate your application and promptly get back to you.

As bond limits reach higher dollar values, Jet may need amplifying information about your project to provide your quote. Examples include:

Once you pay your premium, your receipt and bond copy will be available to you.

PURCHASE RALEIGH LAND IMPROVEMENT BOND

When Does the Land Improvement Bond Obligation End?

As is common in land development bonds, the Raleigh Land Improvement Bond is considered continuous until it is released. Liability for the developer and surety company (Jet) will be released once a project has conducted a successful final inspection and received release from the city’s Development Services Director.

Jet underwrites the bond in one-, two-, and even three-year increments. If the project extends beyond the original bond duration, a renewal to the bond will be required.

Are There Other Bonds That a Developer Needs? 

A land improvement developer in Raleigh doesn’t need additional bonding but some contractors on the job, such as landscape, irrigation, and electrical contractors, are required to hold a bond for their license. Check out other North Carolina construction bonds by clicking here.

Raleigh 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: