San Diego City Grading Public Improvements Performance Bond
Grading is one of the first steps in the construction process, and, considering its delicate nature, this activity may cause damages to onsite public properties. The City of San Diego requires businesses in the area to apply for a grading performance bond in order for them to secure their corresponding permits and commence their operations.
What is a Grading Permit?
A grading contractor will usually need to apply for a grading permit should their public project involve activities like excavation or soil filling and the installation of new pavement and building retaining walls. Grading bond requirements are mandated by the city’s Department of Public Works; however, the Developmental Services Department will determine if you are in need one.
What is the San Diego City Grading Public Improvements Performance Bond?
Prior securing your Grading Permit, San Diego City will require you to file for a performance bond. This bond is an agreement that will hold your business accountable for all constructions made under your supervision, and is mandatory for the activation of your license. It will ensure that applicants will complete the grading project following city standards, and guarantees the compensation of the public in the event of property damages.
For more information, you may visit the San Diego City Office or check their website for an overview.
How does it work?
The San Diego City Grading Public Improvements Performance 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 contractor), Obligee (San Diego City), 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 deliver agreed upon services or violate any licensing provisions. The Obligor will receive and assess the validity of all public claims where compensation may only amount to the total penal sum agreed upon in the bond form.
The validity of claims are received and determined directly by the Obligor, acting as an independent third party in the process. All paid claims, including the premiums and legal fees, must be reimbursed by the Principal to the Bond Company.
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.
How much does it cost?
The San Diego City Grading Public Improvements Performance Bond, on the average, will cost between 1% and 10% of the total bond amount, depending on the applicant’s credit score, license history, and industry experience.
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.
Secure your bond as early as today to get your grading permit ready in no time. 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 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!