Porterville City Encroachment Contractor Bond
When construction work could encroach onto public property, it is mandatory that businesses in the City of Porterville file for an Encroachment Permit Bond to activate their licenses. In the event a contractor damages or alters any property of the Obligee (City of Porterville), the bond stipulates that the Principal (applicant) must provide compensation.
What is an Encroachment Permit?
An encroachment permit is typically required to commence construction work when the contractor is set to use any part of the road right-of-way (RROW). It is especially required when there is potential conflict with public property, including water lines, sewer facilities, and roadways.
The City of Porterville has their specific rules on when and how you should secure an encroachment permit. You can check the Porterville City page to know more about the permit requirements.
What is the Porterville City Encroachment Contractor Bond?
The Porterville City Encroachment Contractor Bond provides a legal contingency for the county, ensuring that the applicant will compensate the public for any damages done on government properties or the inconvenience it may cause the citizens.
By purchasing and filing for an encroachment bond with the City of Porterville, you can activate your business license. Should your project encroach onto public property or area, the city will require you to secure an encroachment permit. To know more information about your project’s zoning, you may consult with the City Planning Division.
How does it work?
The bond must be issued by a surety bond provider certified by Department of Insurance of California. The parties in the agreement are the Principal (business or permit applicant), Obligee (City of Porterville), 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 meet their standards or violate other licensing provisions. The Obligor 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 Obligor.
The Obligor 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?
The City of Porterville does not require credit reports for an encroachment bond, but Obligors conduct their own verification as part of their underwriting. An Encroachment Contractor Bond for Porterville City is usually costs between 0.5% and 5.0%.
Want to know your standing? Visit here and get your 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 encroachment contractor 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
- 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!