you are here: Home > Business > Development, Land Use & Construction > Cost Estimate - Bond Figure

Cost Estimate - Bond Figure

What is Cost Estimate - Bond Figure?

The developers or their authorized representative shall submit a written request that states the type of bond required. The request must be on a company letterhead that includes company address, phone number or by e-mail that shows official company address.

1. The bond estimate is prepared by the City. The bond is intended to cover the required improvements shown on the approved construction plan and plat. In order to establish consistency for all project estimates, the City has prepared a Unit Price List to be used for calculating bond figures and is updated/adjusted every year based on the inflation factor in the ENR Construction Cost Index.
   

   COMPLETE UNIT PRICE WORKSHEET
     EXCEL Workbook with three spreadsheets:

   Offsite (ROW) Improvements

   Onsite (Non-ROW) Improvements

   Total Performance Bond
   Land Disturbing Permit Bond
   Stormwater Permit Bond

What are the Methods for Calculations?

Public Works will determine the total cost of the improvements (100% incomplete) as the basis for determining the performance, ancillary and defect bond amounts. Then, the total amount is adjusted based on the extent of completed improvements according to the following credit schedule.

 

Utility Improvements Credit	Credits
Improvements complete and tested pending activation	85%
Improvements complete pending testing and activation	70%

 

Streets and Drainage Improvements Credit	Credits
Excavation for lakes	85% or slope restoration based on ac.
Completed open drainage systems (ditches/swales) with stabilization provided	85%
Completed closed (pipe) drainage systems including video inspection	85%
Completed curb and gutter pending acceptance	85%
Base stone pending fine grading and compaction test (proof rolling)	60%
Base stone passing compaction test	85%
Base asphalt	85%
Surface asphalt passing tolerance/rideability failing tolerance/rideability	100% 85%
Sidewalks and all other completed items pending acceptance	85%
Base/surface asphalt over stone failing compaction test	85%

 

The following conditions will apply in determining bond figure:

1. Add Administration and Engineering (A&E) = 15%

2. Add Contingency = 8%

3. Generally, the bond amount will not be reduced to less than 50% of the total cost prior to the Streets & Drainage Final Inspection

4. A % premium may be added for smaller projects, complex right-of-way work and unstabilized drainage ditches.

Defect Bond

Defect Bond	% of Total Improvments
Utility Defect Bond (1 Year)	15% (Minimum $5,000)
Streets & Drainage Defect Bond (2 Year)	15%