When comparing a subdivision bond vs performance bond, it’s important to understand their distinct purposes. A subdivision bond is typically required by municipalities to ensure that a developer completes public infrastructure—like roads, sidewalks, or sewer lines—within a new development. It protects the public interest. In contrast, a performance bond is usually used in construction contracts to guarantee that a contractor completes a specific project according to terms and deadlines. It protects the project owner. While both bonds provide financial assurance, subdivision bonds focus on public improvements tied to development approval, whereas performance bonds apply broadly to private and public construction projects. Knowing the difference helps developers and contractors meet legal and project requirements effectively.