Sacramento County Encroachment Permit Bond - $2,500

When construction work could encroach onto public property, it is mandatory that businesses in the County of Sacramento file for a $2,500 Encroachment Permit Bond to activate their licenses. In the event a contractor damages or alters any property of the Obligee (Sacramento County), the bond stipulates that the Principal (applicant) provides 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 or RROW. It is especially required when there is a potential conflict with public property, including water lines, sewer facilities, and roadways.

The County of Sacramento has their specific rules on when and how you should secure an encroachment permit. You can check the Sacramento County page to know more about the permit requirements.

What is the Sacramento County Encroachment Permit Bond?

Sacramento County’s Encroachment Permit Bond provides a legal contingency for the county, ensuring that the public is compensated by the applicant for any damages done on government properties or inconvenience caused to the county’s citizens.

By purchasing and filing for an encroachment bond with the Sacramento County, you can activate your business license. To know if your project will need an Encroachment Permit, you may consult with the County Site Improvement and Permits Section (SIPS). Permit issuance will normally take 10 business days and applications are made available online for your convenience.

How does it work?

The bond must be issued by a surety bond provider certified by the Department of Insurance of California. The parties in the agreement are the Principal (business or permit applicant), Obligee (County of Sacramento), 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 business's responsibility for their dealings.

How much does it cost?

The County of Sacramento does not require credit reports for an encroachment bond, but Obligors conduct their own verification. An Encroachment Permit Bond for Sacramento County is usually around $100.

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 helping 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
  • 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!

Sacramento County Encroachment Permit Bond - $2,500

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