Newark City Encroachment Permit Bond

The City of Newark requires businesses in the area to apply for bonds in order to secure their encroachment permits and activate their licenses. These requirements are needed to ensure the compensation of the public should accredited applicants cause any licensing infractions, such as damages to government-owned properties, in the course of the project. The State of California defines an encroachment as any implement or event covered under the city’s right-of-way.

What is an Encroachment Permit?

An encroachment permit is a legal requirement businesses must secure to conduct work affecting the public right of way of an area; in this case, the City of Newark. The permit ensures that projects affecting the area in, along, or near driveways, curbs, sidewalks, and gutters are compliant with the City’s codes and engineering standards.

Other works that normally require encroachment permits are fencing; landscaping; roadway widening; transient placement of scaffolding, dumpster, or storage bins; signage posting; and mailbox installations. Typically, the permit will also cover all installations and repairs of public utilities.

What is the Newark City Encroachment Permit Bond?

Prior the conduct of any work affecting the public right-of-way in the City of Newark, businesses involved must secure a performance bond for their encroachment permits. The bond guarantees that developers or permittees will adhere to the terms of work, deliver expected outcomes to quality, and follow the City and construction standards. This will restore any alteration on public properties – whether intentional and unintentional – to its original structure or condition.

How does it work?

The City of Newark Encroachment Permit Bond must be issued by a surety bond provider certified by California’s Department of Insurance. The parties in the agreement are the Principal (permit applicant or business), Obligee (City of Newark), and Surety/Bond Company or Obligor (surety bond provider or insurance).

The Obligor will guarantee the compensation (performance bond) of the Obligee should the Principal fail to deliver agreed upon services or violate any licensing provisions. The Obligor will receive and assess the validity of all public claims where claims may only amount to the total penal sum arranged in the bond form. The Principal shall reimburse all expenses covered by the Obligor.

The Obligor is secured through an indemnity agreement as the permit applicant or licensed business will ensure the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond. Failure to reimburse

How much does it cost?

The Encroachment Permit Bonds in the City of Newark typically costs 0.5% of the total bond amount.
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How can I apply for this bond?

At Surety Bond Authority, we are dedicated to help you get your bond the fast and easy way. Here is a step-by-step guide to help you get started.


To secure your encroachment permit bond, be sure to transact with a reputable surety company early. If you are ready to get yours processed today, you can APPLY HERE. Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond.


In the assessment phase, our underwriter will need the following information:
● Nature of your profession or business
● Credit score
● Financial strength

For the speedy processing of your application, ensure you have gathered and provided accurate information upon submission.

Bond Issuance

Once the assessment is done, we will promptly issue your bond and send it your way. Contact us today and get your bond issued in no time!

Newark City Encroachment Permit Bond

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