Loudoun Water offers two additional processes for posting a lesser Financial Guarantee based on the applicant type and schedule.

Connection Guarantee for Subdivision of Land (residential)
Alternately to furnishing a guarantee in the amount of 100% of the estimated total construction cost, the applicant may elect to begin construction, when requesting a construction permit as part of an application for a subdivision of land, by providing a lesser Connection Guarantee as a limited amount to assist to mitigate Loudoun Water’s exposure at the locations of proposed connection(s) on the existing public system. 

Requirements include:

  • Use of any reduced performance and payment guarantee amounts will require minimum of 50% of the original total construction cost estimate to be posted as a guarantee.   
  • If the guarantees are posted in the more liquid forms of a letter of credit (LOC) or cash, the amount posted is eligible to be reduced up to 25% for a LOC and up to 50% for cash respectively. (example: $100,000 total construction cost estimate: bond $50,000; LOC $37,500, Cash $25,000) 
  • No further reductions of the financial guarantee will be allowed until the passing of the Beneficial Use Inspection. Reductions will be based on total construction cost estimate and does not vary based on type of financial guarantee. 
  • Financial Guarantees (any form) shall not be accepted for amounts less than $10,000.
  • All offsite easements must have been recorded and provided to Loudoun Water.  

Connection Bond Calculation Sheet

Site Plan Guarantee (non-residential)
Alternately to furnishing a guarantee in the amount of 100% of the estimated construction cost, the applicant may elect to begin construction, when requesting a construction permit, as part of an application for any multifamily, commercial, or industrial site plan by providing a lesser Site Plan Guarantee.  This option is only available if all onsite and offsite easements have been recorded and recorded documents provided to Loudoun Water.

Only onsite infrastructure that does not impact off site parcels are eligible.  Infrastructure that impacts off site parcels is referred to as pass-through.

If there is any active water and/or sewer infrastructure located on site, the Site Plan Guarantee is not eligible to be used.

Requirements include:

  • Use of any reduced performance and payment guarantee amounts will require a minimum of 50% of the original total construction cost estimate to be posted as a guarantee. 
  • If the guarantees are posted in the more liquid forms of a letter of credit (LOC) or cash, the amount posted is eligible to be reduced up to 25% for a LOC and up to 50% for cash respectively. (example: $100,000 total construction cost estimate: bond $50,000; LOC $37,500, Cash $25,000)
  • No further reductions of the financial guarantee will be allowed until the passing of the Beneficial Use Inspection. Reductions will be based on total construction cost estimate and does not vary based on type of financial guarantee.
  • Financial Guarantees (any form) shall not be accepted for amounts less than $10,000.   
  • An 11x17 sheet showing the utilities must be included with the site plan bond form. Highlight pass-through only, water in blue, sewer in green; all other lines not highlighted are proposed onsite (see bond determination example)

Site Plan Bond Calculation Sheet