NC H720

Requires the Department of Transportation to accept transportation improvements before local governments can release performance guarantees required of developers.

Allows developers to choose performance guarantee type: surety bonds, letters of credit, or equivalent security forms.

Sets initial performance guarantee duration at one year (or longer if developer determines scope of work requires it), with extensions permitted if improvements are not completed to specifications.

Limits performance guarantee amounts to 125% of reasonably estimated completion costs, including 100% of labor and materials plus up to 25% for inflation and administrative costs.

Applies to performance guarantees submitted on or after the law's effective date, but excludes performance guarantees for erosion control and stormwater control measures.