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.

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?

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 Credit	Credits
Improvements complete and tested pending activation	85%
Utility Final Inspection Completed (Plat has to be ready for recordation and will be recorded following the Utility Final Inspection)	100%

Streets and Drainage Improvements Credit	Credits
Lakes completed with stabilization/vegetation	85%
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%
Sidewalk 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:

Add Administration, Engineering and Contingencies = 10%
Generally, the bond amount will not be reduced to less than 50% of the total cost prior to the Streets & Drainage Final Inspection
A % 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.