Fresno California Encroachment Permit Performance Bond
Know the how-to of this surety bond today!
What is a Fresno California Encroachment Permit Performance Bond?
It is a requirement that every person must submit to the Director of Public Works and Planning of the County of Fresno before an encroachment permit is issued.
The purpose of this bond is to guarantee the fulfillment of the project by the permit applicant. Through this bond, the County of Fresno will be assured that the permit applicant will construct or make necessary improvements to public right-of-way in an acceptable and lawful manner such as the following:
- The safety of the traveling public will be protected while the work is on-going.
- The permitee will clean-up after the work is done.
- Excavations will be performed in compliance with all applicable portions of Cal/OSHA requirements and California Code of Regulation Title 8 Section 1540.
- Permitee will indemnify the County of Fresno for any damages that might happen.
- Permittee will submit a location plan.
How does a Fresno California Encroachment Permit Performance Bond work?
A surety bond ensures the project’s completion in the event of a permittee’s default.
There are three parties to the bond, namely:
Principal – contractor or permit applicant
Obligee – County of Fresno, State of California
Surety – the party who will guarantee the completion of the contract to the Obligee
If a permitee failure happens, the obligee will declare the permitee in default. The obligee can then file a bond claim in order to recover the amount needed to finish the job.
The surety will first investigate if such default exists. If it does, the claim will be settled.
How much does a Fresno California Encroachment Permit Performance Bond cost?
The bond amount is $6,000. Only a percentage of this will be the bond cost or bond premium.
Bond cost is the amount that the principal will pay the surety. This will depend on the principal’s credit score. Those who have excellent credit scores will only pay as little as $100.
Do you want to know what your bond cost it? Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Fresno California Encroachment Permit Performance Bond?
In order to secure this type of bond, the applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate your financial strength, job/business performance history, and your credit score.
Once the prequalification process is fulfilled, we will execute the bond and send it to you!