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Subdivision Performance Securities
Performance Securities
Developers have the option to provide sufficient security to ensure completion of all required public improvements associated with their approved subdivision in order to record a final plat for at least one phase of their project.
Staff Contact: Katherine Shearin, Planner I - 919-718-4656, ext. 5398 or katherine.shearin@sanfordnc.net
Required Scope of Security
The performance guarantee shall cover 125% of the total estimated cost of all public improvements, based upon Construction Drawings approved by the Department of Public Works. Such a performance guarantee shall cover all on- and off-site improvements required for the project's approval and completion.
Acceptable Forms of Performance Securities
○ a surety bond issued by any company authorized to do business in North Carolina
○ a letter of credit or cash escrow issued by any financial institution licensed to do business in North Carolina
○ other forms of guarantee that provide equivalent security to a surety bond or letter of credit
Duration of Performance Security
Public improvements must be completed by the developer no later than one (1) year following the date upon which the final plat is recorded.
If the performance guarantee is likely to expire prior to the completion of the required public improvements, the guarantee can be extended, or a new guarantee submitted and approved, for an additional period of time sufficient to complete the improvements.
Release of Performance Security
Upon completion of all public improvements, and inspection by the Public Works Department, the performance guarantee may be released.
Financial Guarantee Review and Approval Process:
○ Provide an itemized cost estimate to the Department of Community Development, prepared by a licensed engineer, based upon the approved
Construction Drawings reviewed and approved by the Public Works Department.
○ The cost estimate will be reviewed for reasonableness and accuracy by Community Development and Public Works staff.
○ If found to be reasonable and accurate, Public Works staff will issue a memorandum stating so.
○ The developer, or his/her representative, shall then be provided with a Infrastructure Completion Financial Guarantee form to be completed and
submitted back to Community Development staff for review.
Click here for a downloadable step-by-step overview of the subdivision financial guarantee process.
A complete Financial Guarantee submittal will include:
• a completed Infrastructure Completion Financial Guarantee form (with all signatures, seals, and notarizations)
• a General Power of Attorney (with signatures, corporate seals, and notarizations)
• verification of the surety's licensure to do business in NC (licensees must be registered with the NAIC)
• an itemized cost estimate prepared by an NC-licensed engineer
• written approval of the itemized cost estimate from the Public Works Dept. (typically in memorandum format on department letterhead)
Financial Guarantee Documents