Sacramento Suburban Water District Encroachment Permit Bond - $7,000

When water facility constructions could encroach onto public property that may also affect Sacramento water lines, it is mandatory that businesses or applicants file for a $7,000 Encroachment Permit Bond to activate their licenses. In the event a contractor damages or alters any property of the Obligee (Sacramento Suburban Water District), the bond guarantees that the Principal (business) will duly compensate the Obligee.

What is a Water System Encroachment Permit?

A water system encroachment permit is typically required to commence construction work in, along, near, or on areas under the road right-of-way or RROW for the installation or construction of water facilities. This is to avoid any conflicts with the existing water lines that can potentially cause property damages.

The Sacramento Suburban Water District imposes standards on when and how you should secure an encroachment permit. You can check their Development Service page to know more about the permit requirements.

What is the Sacramento Suburban Water District Encroachment Permit Bond?

The bond provides a legal contingency for the water district, ensuring that they are compensated by the applicant for any damages done to government properties or for inconveniences caused to the citizens during their construction or installation of water amenities.

By purchasing and filing for an encroachment bond with the Sacramento County, you can activate your business license. To know more about your project’s construction requirements, you may visit Sacramento’s Standard Construction Specifications.

How does it work?

The applicant must file for a $7,000 bond with the Sacramento Suburban Water District through a surety company certified by California’s Department of Insurance. The parties in the agreement are the Principal (permittee), Obligee (Sacramento Suburban Water District), and Surety/Bond Company or Obligor (surety bond provider/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 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 Sacramento Suburban Water District Encroachment Permit Bond does not require credit reports for an encroachment bond, but Obligors conduct their own verification. The bond will usually cost 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 industry
  • 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!

Sacramento Suburban Water District Encroachment Permit Bond - $7,000

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