What is a Site Improvement Bond?
A site improvement bond is a form of insurance that contractors purchase when doing an improvement on a current site rather than on a new building. The bond ensures that the project will be handled as agreed upon. The bond will reiumburse the victims of fraud or illegal activity on the part of the contractor. The bond is similar to subdivision bonds except that subdivision bonds are for new buildings.
Before contractors purchase a bond from an agency, they must submit themselves to a credit check, have their application approved, and go through other screening processes.