Field Services

TOWN OF CARY FINANCIAL GUARANTEE REQUIREMENTS

 

Development activity usually requires two (2) types of financial guarantees during the course of a project.  An automatically renewing Letter of Credit using our LOC form # 801 or Cash must be used when posting a financial guarantee.

 

Completion Financial Guarantee

 

The first financial guarantee requirement is for guaranteeing anything that has not been installed at the time of plat recording or at issuance of a building’s certificate of occupancy.  This financial guarantee is referred to as a Completion Financial Guarantee. 

 

The developer’s representative must submit a written estimate for the cost of the uninstalled items to the project’s field engineering technician.  The estimate must be submitted and sealed by a NC Professional Engineer describing what is being covered, how much it will cost, a vicinity map, and a schedule for completion.  The amount of the financial guarantee must be calculated at 1-1/2 times the estimated construction cost or two (2) times the amount if the work is for a thoroughfare street.  The financial guarantee is then submitted to the Department of Engineering and must remain in effect until the items are completed. This financial guarantee will be released when all items related to the financial guarantee are completed. The financial guarantee will be returned to whoever submitted it.

 

Warranty Financial Guarantee

 

The second financial guarantee requirement is for the guarantee that all public infrastructure (example; water, sewer, street) improvements for the project will be accepted for total maintenance at the end of the warranty period.  This financial guarantee is sometimes referred to as a L.D.O. guarantee due to the requirement being stipulated by the Town of Cary Land Development Ordinance Chapter 8.

 

The developer’s representative must submit an estimate of quantity and a vicinity map for this bond to the project’s field engineering technician based on the quantities of installed improvements.  The unit price is set by the Town and includes any work that was installed as a part of the project. The L.D.O. financial guarantee will be released upon issuance of the end of the warranty acceptance letter.

 

The current unit prices are:

 

STREETS: (covers all streets and related improvements):

 

$ 20.00 / SY of road installed (back to back street width, times length, divided by 9, regardless of road size)

 

UTILITIES:

                                   

Water Line (4” and up) @ $ 12.00 / LF

Sanitary Sewer Line (8” and up) @ $ 12.00 / LF

 

 

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