When Developers and Home Builders start a new project, they give security to the city or township guaranteeing the construction of public improvements (streets, curbs, lights, water, sewer, etc.) The security may be in the form of cash, a bank issued irrevocable letter of credit (ILOC), or a surety bond.
They’re all the same to the township, but there are huge differences for the contractor. The most obvious is the loss of use of their funds. How long will the money be tied up? It can take much longer than expected to get these obligations released (the township is in no hurry!)
If a dispute arises and cash or an ILOC was used, the township just takes the contractor’s money. It’s all over. With a surety bond, there is a discovery process through the claims department. The contractor has input and may affect the outcome.
So, back to the horses. For clients that have already posted cash or an ILOC, they can swap it out with a surety bond! Get their money back. Gain more control. Protect company assets. Put the cash to good use!
How to start? Call FIA Surety. Since 1979, we have been a steady provider of site and subdivision bonds. We do little $20,000 site bonds for commercial property owners and have written multi-multi million dollar subdivision projects. Come to the experts to swap in a surety bond, or to write a new project. We get them done!
Read expert analysis: Why Surety Bonds are the way to go here.
Call FIA Surety: 973-541-3417
We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN, FL, GA, AL, OK, TX