Los Angeles California General Improvement Performance Bond
Need this bond ASAP? See how to easily apply for one below!
What is a Los Angeles California General Improvement Performance Bond?
A general performance bond is required of every person who has applied for any of the following:
- Building permit
- Zone change
- Zone variance
- Conditional use of property
- Street or alley vacation
- Legal lot access
This bond is also required to be obtained by a person who has voluntarily offered to dedicate and/or improve certain public easements.
The purpose of this bond is for the City of Los Angeles to ensure that the applicant (Principal of the bond) will conform to the standards and specifications of the Board of Public Works. The Principal is required to comply with the provisions of Articles 2 and 7 of Chapter 1, and Sections 62.105 through 62,118 of the Los Angeles Municipal Code as well.
All Class B permit applicants are required to obtain this bond.
How does a Los Angeles California General Improvement Performance Bond work?
The Principal is responsible for fulfilling the contractual obligations required by the Obligee (City of Los Angeles). The Obligee requires this bond as a financial guarantee in case the Principal fails to perform the work required of him or her.
The Surety (surety bond provider) will extend its credit to the Principal as an assurance to the Obligee. If a Principal commits a violation (e.g. fails to complete the project on time), the Obligee will file a claim against this bond to recover the monetary loss that the Obligee has sustained.
The Surety will ensure that the Obligee is paid once the claim has been proven. The Surety will then seek reimbursement of the payments made from the Principal.
How much does a Los Angeles California General Improvement Performance Bond cost?
The bond premium will depend on the Principal’s credit score. Those who have excellent credit scores will be eligible to pay as little as 1% of the bond amount!
The bond amount will be determined by the Bureau of Engineering.
How can I get a Los Angeles California General Improvement Performance Bond?
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 the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Ready to start on your bond? APPLY HERE!