California Encroachment Permittee Performance Bond

Get fast approval for one of the most important requirements for a California encroachment permit!

What is a California Encroachment Permittee Performance Bond?

Encroachment permit applicants are required to obtain this bond in order to ensure the compliance of the applicants to the relevant laws when constructing, altering, repairing, improving facilities, or conducting specified activities to the State highway’s right-of-way.

Through this bond, the encroachment permit applicant is assuring the California Department of Transportation (Caltrans) that the permitted work will be completed in compliance with plans, specifications, and permit conditions.

In addition, this bond will also ensure that if the encroachment permit applicant commits a violation or misconduct, the person who will be harmed will be able to recover the amount incurred.

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

How much does a California Encroachment Permittee Performance Bond cost?

The bond premium will depend on the encroachment permit applicant’s credit score. Those who have excellent credit scores will be eligible to pay as little as 1% of the total bond amount.

The bond amount will be determined by the California Department of Transportation.

The bond amount for performance bond will be calculated based on the project’s estimated costs. The minimum bond amount will be 50% of the project’s estimated cost.

If you have determined your bond amount, you may check you bond premium by getting your FREE QUOTE HERE from us!

How can I get a California Encroachment Permittee Performance Bond?

The first thing that you should do is to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!

Your application will be processed as soon as we’ve received it. One of our expert surety bond agents will contact you regarding the next step. You will be guided throughout the whole process.

An underwriter will assess the following during the prequalification step:

  • Your financial strength
  • Your job/business performance history
  • Your credit score

Once that’s done, you’ll be asked to sign an indemnity agreement. After that, the bond will be issued and sent to you.

How does a California Encroachment Permittee Performance Bond work?

This bond will serve as a financial guarantee regarding the performance of the encroachment permittee (Principal). The Surety (surety bond company) will serve as the Principal’s guarantor to the State of California (Obligee). The Obligee will be the beneficiary of this bond.

The Surety – through this bond – will extend its credit to the Principal. If the Principal fails to complete the encroachment work in compliance with the relevant sections of the California Streets and Highways Code, approved plans, specifications, and permit conditions, the Obligee can file for a claim against the bond.

The Surety will first verify the validity of the claim through an independent investigation. If the claim is valid and the Obligee is paid, the Principal will indemnify the Surety.

Ready to apply? START HERE!

California Encroachment Permittee Performance Bond

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