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Comply to the Code: The Benefits of Compliance Bond


Before the structural plans are drawn up, foundations set in or walls built, a construction project must comply with legal limits.

When we take a property into consideration, the codes precede the construction. And by codes, we mean the codes guaranteed by a compliance bond.

Beginning the Bond

Once an investor decides to take on a project of building on a property, they are obligated to follow certain municipal regulations to ensure structural safety and soundness.

Following the guidelines is a crucial part of finalizing the construction, regardless of the type of building

Code compliance bonds are surety bonds validating that the ‘principal’ (who in this case is usually the contractor) will meet building codes and standards as required by the county and the state in which the property is being built.

This bond encompasses minimum standards for safety, construction area, rebuild and rework.  All parties – realtors, contractors, builders, and others –have to abide by the codes of the compliance bond.

The principal’s failure to adhere to the code will mean that the financial collateral to the state will be fulfilled by the bond. The principal may also have to pay additional fees to the authorities as compensation for any alterations/ repairs needed on the property.

Browsing the Benefits

This bond places responsibilities on construction companies to research official plans and municipal code of the project locality. “Compliance” with the codes is not simply a constructional legality; it induces protected practice and ethics into the project.

The bond includes a number of specific benefits:

  • Ensure the safety of the occupants/inhabitants of the building (residential or commercial).
  • Protect the owner of the property due to the contractors’ compliance with the regulations.
  • Consider the general environmental safety in the area.
  • The compliance bond also protects any citizens or other individuals within the vicinity of the building once it is completed.

A principal should acquire the bond from an approved surety company, and submit it to the state county’s municipal authority to acquire a building permit.

As a leading surety agency and brokerage issuing bonds throughout the 50 states including California and Florida, we ensure efficientapplication of a code compliance bond at competitive rates.

Our bond experts will guide you through the process of obtaining a code compliance bond. Get in touch with us to apply!

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