The County of Alameda requires contractors performing construction on streets and highways in the county to obtain a Streets and Highway Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the County of Alameda that all contracted work will be completed on time and the jobsite will be returned to its original condition.
As stated by Municipal Code 12.08.300, applicants must submit a cash deposit, surety bond, certificate of deposit, letter of credit or passbook account in an amount determined by the Director of Public Works that’s sufficient to reimburse the County for expenses incurred in restoring the worksite to its prior condition.
The bond cost for the contractor is typically between 1%-7.5% depending on the contractor’s personal credit score.
Bond Amount | Bond Cost* |
---|---|
Varies | 1%-7.5% |
*Prices shown are based on several factors. Not all available pricing tiers are shown. Rates do not constitute an offer of bonding and are subject to change at any time.
Applicants must submit a completed application to the Director of Public Works. According to Municipal Code 12.08.170, the Director of Public Works may require applicants to submit with the application form a map showing the location of the proposed encroachment and plans describing the full extent of the proposed work.
County of Alameda requires wet signatures** on filed bond documents. This means both parties must physically sign the bond prior to sending it in to the County of Alameda. The original bond form issued by CCIS needs be mailed to or dropped off at the following location by the contractor once signed:
**Properly review bond forms to confirm if notarization is required. Failure to adhere to document requirements may lead to rejection of the bond form by the County of Alameda.
The permit bond expires upon the specified expiration date, typically one year from the date of issuance. A new permit bond will need to be purchased should the project take longer than one year.
If the County of Alameda files a claim against the Streets and Highway Permit Bond, the Surety company will investigate the legitimacy of the claim and proceed accordingly. CCIS does not handle surety claims in office, however, claims contact information will be provided to the contractor, to move the claims process forward.
If the claim is found to be legitimate, the Surety company will payout to the County of Alameda, up to the limit of the bond.
Unlike insurance policies that protect contractors from unforeseen events, this bond protects the County of Alameda, its laborers, and suppliers from the actions of a contractor. Contractors are responsible for their actions and therefore must reimburse the Surety company for any claims paid. Failure to do so will significantly inhibit a contractor’s ability to obtain a surety bond for future jobs.