California Encroachment Permittee Payment Bond

Get your encroachment permit through this bond!

What is a California Encroachment Permittee Payment Bond?

The California Department of Transportation (Caltrans) – as mandated by the California Streets and Highways Code – requires persons to submit this bond as an encroachment permit requirement.

This is to ensure that the encroachment permittee will pay any fees due for all the activities for placement of encroachments within, under, or over the State highway’s right-of-way. This includes paying the cost of labor, subcontractors, and material suppliers on time and in full.

Encroachment works that are beyond $5,000 are required to be bonded. Non-public encroachment work may be bonded depending on the recommendation of the District Permit Engineer.

Encroachment permit applicants who are required to obtain this encroachment permit payment bond are the following:

  • Individuals
  • Counties
  • Contractors
  • Corporations
  • Utilities
  • Cities
  • Native American Tribes
  • Other government agencies

This requirement is in pursuance of Section 677 of the California Streets and Highways Code.

How much does a California Encroachment Permittee Payment Bond cost?

The bond cost will range from 1% to 5% of the bond amount. The bond cost will depend on the encroachment permit applicant’s credit score.

The bond amount will be determined by the California Department of Transportation. For encroachment permittee payment bond, the amount will typically be 100% of the project’s estimated cost.

Once you have determined your bond amount, you can find out what your bond premium will be by claiming your FREE SURETY BOND QUOTE HERE!

How can I get a California Encroachment Permittee Payment Bond?

APPLY FOR THIS BOND

If you are ready to do this now, you may APPLY HERE!
One of our expert surety bond agents will guide you through the entire process – from the time you have applied until the bond is issued to you.

UNDERWRITING

Next, you will be asked to submit a few important information that our underwriter requires in order to assess the following:

  • Your job or business history
  • Your credit score
  • Your financial strength

To avoid any delays, make sure that you have gathered the right information needed prior to submitting your application.

BOND ISSUANCE

After the indemnity agreement is signed, the bond will be issued and sent to you!

How does a California Encroachment Permittee Payment Bond work?

This bond will be an agreement among the encroachment permit applicant (Principal), the surety bond provider (Surety), and the State of California (Obligee).

The Surety will guarantee that the Principal will pay all encroachment work fees. The Surety will also ensure that if the Principal defaults on this obligation, the Obligee will be compensated through a bond claim.

If the Principal fails to pay the cost of labor, its subcontractors, and material suppliers, the HQ Division of Accounting will file a claim against this bond. The Surety will conduct an investigation first before the claim is settled. If the claim is valid, the Surety will pay the Obligee.

Need to get your surety bond ASAP? APPLY NOW!

California Encroachment Permittee Payment Bond

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