Construction Permit Bonds are surety bonds that a local municipality or state agency requires in order to receive a construction permit. For example, in Nevada to be approved for a right-of-way permit project, contractors must file a Right-of-Way Occupancy Bond with their local district office. In Reno, a $5,000 bond is needed for contractors seeking permits for grading, paving, excavation, encroachment, or repairing public streets, highways, and right-of-ways.
Permit Bonds are required to verify public safety, safeguard a municipality's financial interests, and ensure that licensed contractors adhere to building codes and regulations.
These bonds also guarantee that the city or county property will be restored to its original state once the work is completed.