# Goodyear Performance Bonds, Warranty Bonds and Project Insurance

URL: https://mycontractorsinsurancequote.com/arizona/metros/phoenix/goodyear
Updated: 2026-10-29 · Reviewed by the Principal, Gleason Insurance Brokers, LLC
Publisher: My Contractors Insurance Quote, a website of Gleason Insurance Brokers, LLC

Goodyear's 2025 Engineering Design Standards require a performance bond or other financial assurance equal to 100 percent of the estimated cost of every improvement inside a final plat's boundary, not phase by phase, before the city issues a permit. After acceptance, the city holds a warranty bond of 10 percent of the original estimate for at least two years, accepted only from entities rated A+ by A.M. Best. New projects also post a separate assurance for stormwater drainage problems in the first two years, so a Goodyear developer's bond plan runs longer and asks more of the surety than a single completion bond.

## Key Decision Points
- Performance security covers 100 percent of the plat's improvements and is not set by construction phasing limits.
- The amount comes from an engineer's cost estimate in a format the standards prescribe.
- Warranty bonds equal 10 percent of the original estimate and run at least two years from the Letter of Acceptance or Notice of Approval.
- Goodyear accepts warranty bonds only from entities with an A+ rating from A.M. Best.
- A separate two-year assurance covers stormwater drainage or disposal problems after initial construction.

## When Goodyear Requires a Performance Bond

Section 2.9.1 of Goodyear's Engineering Design Standards and Policies Manual, 2025 edition, requires a performance bond or other financial assurance, in a form and amount acceptable to the City Engineer and City Attorney, before a construction permit is issued. It applies to improvements and work in city rights-of-way, easements or property, to developments that divide or subdivide land and must give new lots access and utilities, including the on-site improvements that provide them, and to any improvements the city will own, control or maintain.

Arizona law lets a municipality require performance bonds, assurances or other security for subdivision improvements under A.R.S. §9-463.01, and Goodyear's manual sets the details. Because the bond is a permit condition, the surety must be approved and the instrument accepted before work in the right-of-way can start. A developer should build the surety's underwriting, including financial statements and the indemnity agreement, into the schedule before plan approval.

Goodyear sites also follow the county-level requirements described with [Phoenix-area project rules](https://mycontractorsinsurancequote.com/arizona/metros/phoenix).

## One Hundred Percent of the Plat, Not Phase by Phase

The manual says financial assurance must equal 100 percent of the estimated cost to build all improvements within the boundary of a final plat, map of dedication, condominium plat or amended plat, and that the amount is not determined by separate phasing limits on construction plans. Assurance for any work in city right-of-way, property or easements must be in place before city permits. The cost comes from an engineer's estimate in tabular form, with a separate estimate for each plan set, quantities that match the plan coversheets and unit rates based on current industry rates.

For a developer planning to build a large plat in stages, this front-loads the surety commitment. A plat with five construction phases needs security for all five at the start. The practical options are to plat in smaller pieces, to discuss the structure with the city early or to arrange enough surety capacity to carry the full amount. Each choice affects working capital, the indemnity exposure of the principals and how the lender reads the project's contingent obligations.

[Arizona subdivision assurance bonds](https://mycontractorsinsurancequote.com/construction-surety-bonds/subdivision-improvement-bonds/arizona).

### Illustrative scenario: A Five-Phase Plat and a Warranty Surety That Missed the Rating

Estrella Vista Development (fictional) records a single final plat in Goodyear for 900 lots it plans to build in five phases. Its engineer's estimate for all public improvements inside the plat is $18.5 million, and the city requires security for the full amount before the first permit, even though Phase 1 is only $4 million of work. Estrella's surety had approved a $6 million bond line. After a broker review, the developer re-plats into three smaller plats, posts security for the first and keeps capacity for the rest. Two years later, its site contractor offers a warranty bond from a surety rated A by A.M. Best. Because the manual accepts warranty bonds only from A+ rated entities, the bond would not have been accepted. Estrella's own surety issues the 10 percent warranty bond instead, the subcontract is amended to back it and the performance bond is released on schedule.

## Warranty Bonds: 10 Percent, Two Years and an a+ Surety

Section 2.15.3 sets the warranty period for completed improvements at two years from the Letter of Acceptance or Notice of Approval, and 90 days for landscaping and irrigation. The period continues until all warranty punch list items are resolved to the City Engineer's satisfaction. The warranty bond must equal 10 percent of the original engineer's estimate for the improvements under the performance bond, run in favor of the city, identify the development, location and improvement types and be held at least two years and until the defects the city inspector identifies are fixed.

The manual accepts warranty bonds only from entities rated A+ by A.M. Best. That narrows the surety market for the warranty instrument compared with many performance bond requirements, so confirm the surety's current rating before the closeout package is assembled. A developer that pushes the warranty down to its site contractor should make sure the contractor's maintenance bond, or the developer's own, meets that rating and runs at least as long as the city's period.

[maintenance and warranty bond terms](https://mycontractorsinsurancequote.com/construction-surety-bonds/maintenance-warranty-bonds).

## What Has to Happen Before the Performance Bond Is Released

Under Section 2.15.4, Goodyear keeps a performance bond until all of the improvements it covers are complete, electronic copies of approved as-built drawings are accepted, a Notice of Approval or Letter of Acceptance has been issued and a compliant warranty bond has been provided. Until then, the surety's obligation is open and so is the developer's indemnity.

The warranty standards also describe work the developer must finish before the warranty expires. For pavement, cracks a quarter inch or wider must be cleaned and sealed under MAG Section 337 and new pavements sealed. Pavement under warranty must receive new thermoplastic markings at the final warranty inspection. These are scope items for the site or paving contractor, and they belong in the subcontract with a price, a schedule and a bonded obligation, not left as a surprise in the second year.

[insurance and bonds for paving contractors](https://mycontractorsinsurancequote.com/who-we-serve/civil-underground-utilities/paving-contractors).

## The Two-Year Stormwater Drainage Assurance

Goodyear's general grading and drainage notes require developers of new projects to provide financial assurance, in a form and amount acceptable to the City Engineer and City Attorney, to cover the cost of correcting stormwater drainage or disposal problems that arise in the first two years after initial construction. If the disposal method cannot drain retained stormwater within 36 hours after a rain event, the developer's engineer must submit a corrective action plan to the city. The design standards page adds that where the manual's notes conflict with Maricopa County Environmental Services or ADEQ requirements, the most stringent standard applies.

This assurance is separate from the warranty bond and focuses on performance of retention basins and drywells over time. A basin that will not drain is often a design, construction and maintenance question all at once, so the claim may involve the engineer's professional liability, the contractor's completed-operations coverage and the developer's own liability. Ask how each policy treats drainage failures and water damage to neighboring property before turnover, and whether a project-specific policy would simplify the answer.

[insurance for storm drain and retention contractors](https://mycontractorsinsurancequote.com/who-we-serve/civil-underground-utilities/storm-drain-contractors).

## Who May Pull a Goodyear Construction Permit

Section 2.3.1 states that permits are issued only for work by contractors who are licensed with the State of Arizona, bonded, hold an Arizona state tax number and have a Goodyear business registration number. The permit application in Section 2.9.1 also asks for a current certificate of insurance naming the city as additional insured, with general liability, products-completed operations and general aggregate limits, vehicle liability and workers' compensation as Arizona law requires, at the amounts the manual lists.

Those amounts are the city's permit minimums, not a recommendation for a project. A developer's own contract, its lender and any wrap-up may require more. The manual also says that, where applicable, financial assurance must be posted and the final plat or right-of-way dedication recorded before construction plans qualify for an extension review, so a project that stalls before posting security may face a full re-review under newer standards.

[per-project aggregate terms in contracts](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/per-project-aggregate).

## Before You Ask for a Quote

### What to Gather
- Final plat or plats and the engineer's cost estimate prepared in the format the manual requires
- Phasing plan showing which improvements fall inside each plat boundary
- Surety's current A.M. Best rating and the bond line approved for the developer
- Indemnity agreement and principals' financial statements for the surety
- Grading and drainage plans with retention and drywell design
- Site and paving subcontracts showing warranty, crack-seal and marking obligations
- Contractor permit documents: state license, bond, state tax number and Goodyear business registration

### What to Ask the Insurer or Surety
- Can the surety carry 100 percent of the plat's improvements at once, or should we plat in smaller pieces?
- Is the surety that will write the warranty bond rated A+ by A.M. Best today?
- How will the two-year stormwater drainage assurance be posted, and who pays if a basin fails to drain?
- What does the city need before it releases the performance bond?
- How do our liability and professional policies respond to a drainage failure after turnover?
- Do our contract and lender require higher limits than Goodyear's permit minimums?

## Broker Notes

**Quick Answer:** Goodyear requires performance security equal to 100 percent of the improvements inside a final plat before permits, then a 10 percent warranty bond from an A+ rated surety held at least two years after acceptance, plus a separate two-year stormwater drainage assurance.

**Common Mistake:** Sizing the surety line to the first construction phase when Goodyear sets the performance security by the whole plat, then discovering the bond cannot be issued in time for permits.

**Broker Perspective:** We compare the plat structure to the surety's capacity before the plat is finalized, check the warranty surety's rating and line up subcontract warranty, crack-seal and drainage duties with the city's release conditions.

**Coverage Impact:** Surety credit and the developer's indemnity stay committed until the city releases the performance and warranty bonds. Drainage and pavement claims after turnover typically turn to completed-operations and professional liability, depending on the policy wording.

## Questions Buyers Ask

### Can I bond only the first phase of a Goodyear plat?

Not if the phases share one plat. Goodyear's 2025 manual says the financial assurance equals 100 percent of the estimated cost of all improvements within the final plat boundary and is not set by phasing limits on construction plans. Developers who want to stage their surety commitment often discuss recording smaller plats, which changes the security for each.

### Which sureties can write a Goodyear warranty bond?

The manual says warranty bonds are accepted only from entities rated A+ by A.M. Best, issued in favor of the city and naming the development, location and types of improvements covered. Check the rating when the bond is written, since a surety rated below A+ may not be accepted even if it is licensed in Arizona.

### How long does Goodyear hold the warranty bond on public improvements?

At least two years after the Letter of Acceptance or Notice of Approval, and until the defects the city inspector identifies are fixed. Landscaping and irrigation bonds are held at least 90 days. The warranty period itself continues past those dates until all warranty punch list items are resolved to the City Engineer's satisfaction.

### What is Goodyear's stormwater drainage assurance, and is it the same as the warranty bond?

It is separate. Goodyear's grading and drainage notes require developers of new projects to post financial assurance for correcting stormwater drainage or disposal problems during the first two years after initial construction. If retained stormwater does not drain within 36 hours after a rain event, the developer's engineer must submit a corrective action plan.

### What does a contractor need to pull a permit in Goodyear?

The manual says permits are issued only to contractors licensed with the State of Arizona, bonded, holding an Arizona state tax number and registered with a Goodyear business registration number. The permit application also asks for a certificate of insurance naming the city as additional insured at the limits the manual lists, which are permit minimums rather than project recommendations.

## Official Sources

1. [City of Goodyear Engineering Design Standards and Policies Manual, 2025 Edition](https://www.goodyearaz.gov/home/showpublisheddocument/18255/638966385475870000), City of Goodyear Development Services, Engineering. 2.3.1 permit eligibility (licensed, bonded, state tax number, Goodyear business registration); 2.9.1 permit application insurance certificate and performance bond requirements (100 percent of plat improvements, not by phasing; engineer's estimate format); 2.15.3 warranty period and warranty bond (two years, 90 days landscaping, 10 percent, A+ A.M. Best); 2.15.4 performance bond release conditions; general notes on two-year stormwater drainage assurance and 36-hour drain; pavement crack sealing under MAG Section 337 and markings before warranty expiration; extension review conditions. Verified 2026-10-24.
2. [City of Goodyear, Design Standards](https://www.goodyearaz.gov/government/departments/engineering-development-services/engineering/plan-review/design-standards), City of Goodyear Development Engineering Division. The 2025 EDS and PM is current and the 2017 edition is superseded; where notes conflict with Maricopa County Environmental Services or ADEQ requirements, the most stringent standard applies. Verified 2026-10-24.
3. [A.R.S. §9-463.01 (municipal subdivision regulation; performance bonds and assurances)](https://www.azleg.gov/ars/9/00463-01.htm), Arizona State Legislature. Municipalities may require the posting of performance bonds, assurances or other security for subdivision improvements (subsection C(8)). Verified 2026-10-24.

## Related Decisions

- [Arizona developer surety and insurance planning](https://mycontractorsinsurancequote.com/arizona/audiences/developers)
- [how performance bonds are underwritten](https://mycontractorsinsurancequote.com/construction-surety-bonds/performance-bonds)
- [land developer insurance and bonds](https://mycontractorsinsurancequote.com/who-we-serve/developers-subdividers/land-developers)
- [completed-operations coverage](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/completed-operations)
- [builders risk for tract homes](https://mycontractorsinsurancequote.com/builders-risk-insurance/residential-subdivisions)

---

Start a quote request: https://mycontractorsinsurancequote.com/get-a-quote · Call 844-978-7283

Contract and insurance reviews are a courtesy service that may be available at times, depending on our workload and on the size, timing and complexity of the project. A review is not guaranteed and is limited to insurance considerations. It is not legal advice and is not a substitute for advice from your own legal counsel, which you may need before signing a contract or obtaining coverage.

Insurance and surety services are provided through Gleason Insurance Brokers, LLC. Site information is educational and does not constitute legal advice, a binder, an offer of coverage, a guarantee of eligibility or confirmation of policy terms. Insurance conditions are governed by actual issued policies; surety rights and obligations are governed by bond and indemnity documents.