Cost Estimate - Bond Figure
- What is Cost Estimate - Bond Figure?
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The developers or their authorized representatives shall submit a written request that states the type of bond required. The request must be on a company letterhead that includes the company address, phone number, or by email that shows the 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 the below Unit Price Worksheet to be used for calculating bond figures which is updated / adjusted every year based on the inflation factor in the ENR Construction Cost Index.
Complete Unit Price Worksheet (XLS)
Includes:- Offsite (ROW) Improvements
- Onsite (Non-ROW) Improvements
- Total Performance Bond
- Land Disturbing Permit Bond
- Stormwater Permit Bond
- What are the methods for calculations?
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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 provided85% 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 the 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 and Drainage Final Inspection
- A percentage premium may be added for smaller projects, complex right-of-way work and unstabilized drainage ditches.
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.
If the Utilities improvements are 100% complete, then the cost of the Water and Sewer improvements can be removed from the Performance Bond before the Subdivision Agreement is posted.
Requirements
- All Utilities improvements reflected on subdivision plan are to be complete and any punch list items resolved.
- Subdivision Plat is ready for recordation.
- Final Subdivision Plat must be reviewed and approved by Directors of Development and Permits and Planning.
- Plat processing fees are paid.
- Lot Grading Certification is submitted.
- Total inspection fees paid.
- All Water and Sewer Activation Package items must be submitted and approved:
- Defect Bond (Must be approved by City Attorney)
- Construction Record Drawings
- Development and Permits Administrative items:
- Subdivision Agreement and Performance Bond (Must be approved by City Attorney)
- Utilities Final inspection (Activate Water and Sewer)
- Record Plat.
If all subdivision improvements are 100% complete, a developer can elect to avoid posting a Performance Bond and go straight to Defect Period.
Requirements
- All improvements reflected on subdivision plan are to be complete and any punchlist items resolved.
- Subdivision Plat is ready for recordation.
- Final Subdivision Plat must be reviewed and approved by Directors of Development and Permits and Planning.
- Plat processing fees are paid.
- Lot Grading Certification is submitted.
- Total inspection fees paid.
- All Streets and Drainage Final Acceptance items must be submitted and approved:
- Defect Bond (Must be approved by City Attorney)
- Construction Record Drawings
- Right-of-Way Monument Certification
- Street Light Installation payment or Cost Agreement (if required)
- Utilities Final Inspection (Activate Water and Sewer)
- Streets and Drainage Final Inspection is performed.
- Record Plat.
- Subdivision then goes to 2-year Defect Period.
If all subdivision improvements are complete with exception of the Sidewalk and Right-of-Way Vegetation, Surface Course Asphalt, and/or Landscaping, a Performance Bond will need to be posted for these items.
Requirements
- All improvements reflected on subdivision plan are to be complete and any punchlist items resolved. Items indicated above may be placed in a Performance Bond.
- Subdivision Plat is ready for recordation.
- Final Subdivision Plat must be reviewed and approved by Directors of Development and Permits and Planning.
- Plat processing fees are paid.
- Lot Grading Certification is submitted.
- Total inspection fees paid.
- All Streets and Drainage Final Acceptance items must be submitted and approved:
- Subdivision Agreement and Performance Bond (For ancillary items only, typically sidewalk and surface course asphalt - Must be approved by City Attorney)
- Defect Bond (Must be approved by City Attorney)
- Right-of-Way Monument Certification
- Construction Record Drawings
- Street Light Installation payment or Cost Agreement (if required)
- Utilities Final Inspection (Activate Water and Sewer)
- Streets and Drainage Final Inspection is performed.
- Record Plat.
- Subdivision then goes to 2-year Defect Period.
Normally the plat is recorded prior to the Utility Final Inspection. Even if all Utility improvements are installed and tested, the maximum credit towards posting a Performance Bond is 85% (i.e. 15% of the Total Utilities Cost is required as Bond).
In order to obtain 100% credit for Utilities installed and post 0% for a Utility Performance Bond, the following sequence can be followed:
- The plat has to be signed by Directors of Development and Permits and Planning and ready for recordation, i.e. plat fees paid, subdivision agreement and bond executed, etc.
- Utility Final Inspection.
- Plat is recorded.
- Utilities are activated.