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Site Improvement Bond

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Site Improvement Bond Information

A site improvement bond is a bond or a form of insurance policy used for a current site, rather than a new project to ensure that improvements are done to specification. Similar to other bonds, a site improvement bond could involve a project manager, also known as an oblige, this would be the person requesting the work done and may or may not the person who owns the property, but could be the person in control of the property, such as a government official. Secondly would be the principal, this would be the contractor who would be responsible for performing the work or organizing the sub-contractors, he would be the one who would be the one to purchase the bond. Lastly the surety company would be the one who would provide the bond. They would be the ones would guarantee that if that contractor does not follow the specifications made in the site improvement contract, that either the errors were fixed or that the project owner were compensated for the mistakes.

A site improvement could be something as major as a new roof or a complete remodeling of the interior of a home or something as simple as new rain gutters. A city government could be laying new sidewalks in front of a private residence. It could also mean that a utility needs to do work on the property of a private residence. Most often times the improvement plan will include an estimate how long the job will take so the resident can plan for the inconvenience and what the job will cost as part of the bidding process.

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