What are the methods for calculations?

Development Construction 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 CreditCredits
Improvements complete and tested pending activation85%
Utility Final Inspection Completed
(Plat has to be ready for recordation and will be recorded following the Utility Final Inspection)

Streets and Drainage Improvements CreditCredits
Lakes completed with stabilization/vegetation85%
Completed open drainage systems (ditches/swales)
with stabilization provided
Completed closed (pipe) drainage systems including video inspection85%
Completed curb and gutter pending acceptance85%
Base stone pending fine grading and compaction test (proof rolling)60%
Base stone passing compaction test85%
Base asphalt85%
Surface asphalt

  • passing tolerance/rideability
  • failing tolerance/rideability

Sidewalk and all other completed items pending acceptance85%
Base/surface asphalt over stone failing compaction test85%

The following conditions will apply in determining the bond figure:

  1. Add Administration, Engineering and Contingencies = 10%
  2. Generally, the bond amount will not be reduced to less than 50% of the total cost prior to the Streets and Drainage Final Inspection
  3. A percentage premium may be added for smaller projects, complex right-of-way work and unstabilized drainage ditches.

Defect Bond

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

Straight To Activation

  • Situation: Public Utilities are completed, tested and ready for activation but the streets and drainage are not ready.
  • Benefit: No Utilities have to be included in the Performance Bond.

Straight To Defect (100% Complete)

  • Situation: All improvements on construction plan are 100% complete.
  • Benefit: No Performance Bond is required and the City accepts all improvements.

Straight To Defect (with Ancillary Bond)

  • Situation: All improvements on construction plan are complete except for final surface coarse asphalt and sidewalks.
  • Benefit: A bond is required for only the asphalt and sidewalk and the City accepts all improvements.

Show All Answers

1. What is Cost Estimate - Bond Figure?
2. What are the methods for calculations?