Site Improvement Bonds for Improving Existing Property

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What is a site improvement bond?

Site improvement bonds are a type of construction bond ensuring a developer improves existing property according to building codes and their contract with a public entity. Builders and developers are often required to obtain site improvement bonds before beginning work on public subdivisions.

Why do you need a site improvement bond?

You will need to purchase this bond if public right of ways, utilities, sidewalks, streets, etc. are included. The bond protects the public so that improvements to these items will be completed as planned. As the bond principal, if you fail to abide by the contract terms, the obligee may file a claim against your bond.

Get Your Site Improvement Bond:

Quick Takeaways

  • Site improvement bonds are three-party agreements between a project owner/developer, a public agency, and surety.
  • The bond guarantees that a project owner makes improvements to an existing property or site according to the contract terms.
  • A site improvement bond protects a project owner from problems that may arise during construction.

How does a site improvement bond work?

These bonds differ from other types of construction bonds for one big reason. Rather than the three-party agreement existing between a contractor (principal), the project owner (obligee), and surety, the contract is between:

  • The project owner (principal) who obtains the bond
  • A public agency (obligee) that requires the bond
  • The surety company that provides the bond and guarantees the work

The project owner (or developer) is responsible for paying for the bonded improvements, rather than the public entity. But the bond still offers protection for the developer/owner if upgrades don’t go as planned.

Additionally, a contractor may purchase a site improvement bond from a surety provider on the project owner’s behalf.

How much do site improvement bonds cost?

The cost of your site improvement bond will depend on various factors:

  • The size of the job
  • The contract terms
  • The amount of coverage required
  • The contractor’s credit score and financial history
  • The contractor’s work history and experience

Generally, the higher your credit score and financials, the lower your bond premium will be. Many site improvement bonds cost around 2-3% of the total bond amount.

Get a Site Improvement Bond in Your State

Find your bond, select your state, city, or project, and fill in your contact and business information – all online. Once your bond is approved, you’ll pay online and can print your bond!



Founders Ryan Swalve and Zach Mefferd formed the vision for when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.