Grading bond cost
Grading bonds are somewhat unique in that they are required by specific cities and counties, rather than the state. Therefore, while all grading bonds are subject to some degree of underwriting, there is no one set of information required for underwriting all grading bonds due to the fact that each form contains its own unique language and risks.
For example, a grading bond in one city may be based solely on the applicant’s credit score, while another may require the applicant to provide financials, a description of the work, an estimate of the work, etc.
Why this bond
Grading bonds in California are put in place to ensure that principals (contractors) fully comply with all laws, codes, rules and regulations of the city/county in which grading work is being completed. Because these bonds are required by specific cities throughout California, the specific terms of the bond agreements vary, but the contracts are put in place to ensure that principals complete grading and excavation work according to code.
If the principal fails to do so, the bond protects the city and/or any person harmed from financial loss up to the full amount of the bond. Take the first step toward getting a grading permit in California by purchasing your surety bond!
Grading bond details
Although each city has different language and requirements for grading bonds, they all will run concurrent with the period of time until the work is completed. Some also contain a clause stipulating that the principal must complete all required maintenance and abide by all rules and regulations established by the permit for a set length of time after the project’s completion.
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For more city-specific licensing information, applicants should refer to the city website in which they are applying for their grading permit.