In many state, county and local jurisdictions, a compliance bond may be required to ensure that builders, contractors and developers are following local and state regulations.

A compliance bond may be required before obtaining a permit or license to start a project. It creates an additional layer of protection for the entity that requires the bond. Often times there are local or jurisdictional elements (requirements and considerations) that are more stringent than in other areas. Thus, creating a requirement for bonding. As with all surety bonds the purpose of the bond is to protect property owners or the general public and others.