FAQs: Bond and Agreements

What is a bond and what is its purpose?

A bond is a security posted by the developer prior to beginning construction, either in the form of a performance bond, letter of credit, set-aside letter or cash, which guarantees that the developer will complete all public infrastructure and any other bondable items indicated on the approved plan. If the developer fails to do so, the county can step in to complete the required public infrastructure work by utilizing money from his bond.

What items are included in public infrastructure?

These are items that will be owned and maintained by the county or state, such as public streets, public sidewalks, sanitary sewers, storm sewers and drainage facilities, waterlines, traffic signals, streetlights, landscaping required by the county ordinances and other improvements required by proffers. State law does not allow counties to bond private improvements, such as driveways, private walkways, mailboxes, sprinklers or landscaping not required by the county ordinance.

Who is the Bond Committee Review Board?

The Bonds and Agreements Chief, county attorneys and Department of Taxation finance staff form the Bond Committee Review Board. This board meets weekly to review new bonds, extensions and replacement bonds for compliance by verifying the signature authorities, agreements involved and to verify the language in the bond packages.  

Who is responsible for maintaining the project and the bondable items until the bond is released?

The developer is responsible for maintaining all of the bondable items, including streets and utilities, until they are turned over to, and accepted by the county or state agency, which will be responsible for their ownership and maintenance. This includes snow removal and the maintenance and repair of all bondable items, until such time as they are accepted by the agency.

Who is responsible for bond maintenance, including collecting the bond, inspecting the project and releasing the bond?

The Site Development and Inspection Division is responsible for establishing, collecting, and maintaining all bonds, and also for inspecting all public infrastructure and bondable items, including erosion and siltation control measures, to assure that the project is constructed per the approved plans, and meets the minimum county and state standards.

When is the bond returned to the developer?

The bond is returned to the developer after all of the required public infrastructure and any other bondable items have been built, inspected, and accepted for ownership and maintenance by the appropriate county or state agency.

More Questions?

Please contact the Bonds and Agreements Center via email or telephone at 703-222-0801, TTY 711.

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