Development activity usually requires one of two (2) types of performance guarantee during the course of a project. A performance guarantee, as defined by G.S. 160A-372, must be used when posting a financial guarantee. Forms for irrevocable letters of credit, cash or sureties can be found below.
Completion Performance Guarantee
A Completion Performance Guarantee 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.
- The developer’s representative must submit a written estimate calculated at 1.25 times the estimated cost of the uninstalled items to the project’s infrastructure field service technician
The estimate must be sealed by a NC Professional Engineer and include a vicinity map and a schedule for completion.
- The estimate will be reviewed and approved by the Town prior to the developer submitting the performance guarantee.
- The performance guarantee is then submitted to the Water Resources Department for review and approval.
This performance guarantee will be released when all items are completed and a Total Acceptance Letter is issued by the Town at which time the performance guarantee will be returned.
Correction Period Performance Guarantee
Developers must submit a Correction Period Performance Guarantee for all public infrastructure improvements (example; water, sewer, street, etc.) constructed by the project that will be accepted for total maintenance at the end of the correction period (one (1) year from the issuance of the Acceptance for Routine Maintenance Letter). This applies only to projects not requiring a Completion Performance Guarantee as outlined above.
- The developer’s representative must submit an estimate of quantity using the current unit prices below and a vicinity map for review and approval to the project’s infrastructure field service technician.
- The financial guarantee is then submitted to the Water Resources Department for review and approval prior to submitting original.
The performance guarantee will be released upon issuance of the Total Acceptance Letter.
Current Unit Prices:
Streets (covers all streets and related improvements):
$20/Square Yard of road installed (back to back street width, times length, divided by 9, regardless of road size)
Greenway Trails and Structures (bridges, walkways, pedestrian culverts and related improvements):
$10/Square Yard for both asphalt and concrete trail
Bridges, board walks, pedestrian culverts or structural improvements @ ½ the cost
Water Line (4” and up) @ $ 12.00 / LF
Sanitary Sewer Line (8” and up) @ $ 12.00 / LF
Forcemain (4” and up) @ $12.00 / LF
Reclaim Water Line @ $12.00 / LF
Pump Stations @ ½ Construction Cost