Port of San Francisco Excavation Bond
The Port of San Francisco requires businesses to apply for excavation bonds in order to secure their general excavation permits and activate their licenses. These requirements are needed to ensure the compensation of the public should accredited businesses cause any licensing infractions, such as damages to public properties, during their project.
What is a General Excavation Permit?
When licensed contractors install, replace, or repair a utility facility, they will need to excavate and restore sidewalks, gutters, curbs, pavements, and other part of the public right-of-way. This requires them to secure a general excavation permit in order to do continue. The permit ensures that projects affecting the area in, along, or near the right-of-way are compliant with the city or county’s codes and engineering standards.
What is the San Francisco Port Excavation Bond?
Prior securing an excavation permit, the Port of San Francisco will require you to secure an Excavation Bond. The bond is a form of financial assurance that altered public property is returned to its original or working condition. It will also guarantee the activation of your license.
A minimum of 10 business days is needed for the approval and activation of the license with no allowable exemptions. For more information, you may visit the San Francisco Port Office or check out their site. You may also check San Francisco’s General Excavation page for reference.
How does it work?
The excavation bond must be filed with the Port of San Francisco and must be issued by a surety bond provider certified by the California Department of Insurance. The parties in the agreement are the Principal (applicant), Obligee (Port of San Francisco), and Surety/Bond Company or Obligor (surety bond provider or insurance).
The Bond Company will guarantee the compensation (performance bond) of the Obligee should the Principal fail to meet their standards or violate other licensing provisions. The Surety Company will assess the validity of claims, where claims may only amount to the total penal sum agreed upon in the bond form. The Principal shall reimburse all expenses covered by the Surety Company.
The Bond Company is secured through an indemnity agreement as the licensed business is mandated by law for the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond and shall ascertain the businesses responsibility over their dealings.
How much does it cost?
Depending on the applicant or business owner’s experience, credit score, and license history, the San Francisco Port Excavation Bond may cost between 0.5% and 5% of the total bond amount.
Want to know your standing? Get your free surety bond quote today!
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 excavation 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.
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!