City of Chula Vista Street Improvements Bond with Construction Permit

What is the Purpose of the Street Improvements Bond with Construction Permit?

The City of Chula Vista requires contractors performing street improvement in the city to obtain a Street Improvement Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of Chula Vista that all contracted work will be completed on time and the jobsite will be returned to its original condition.

How Much Does the Bond Cost?

Per Municipal Code 12.20.090, The amount of the bond covering a specific job shall be based on the amount of the estimate submitted by the person doing the work and approved by the Director of Public Works and in accordance with the schedule in subsection (B) of this section. An annual and continuing bond may be in an amount of $1,000, $2,000, $3,000, $4,000, $5,000 and $10,000, or any larger amount in multiples of $5,000.

The bond cost for the contractor is typically between 1%-7.5% depending on the contractor’s personal credit score.

Does CCIS File the Bond for Applicants?

City of Chula Vista requires wet signatures** on filed bond documents. This means both parties must physically sign the bond prior to sending it in to the City of Chula Vista. 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 City of Chula Vista. The City of Chula Vista DOES require notarized signatures from both the Surety company and the Principle.

Does This Bond Expire?

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.

Claims Information

If the City of Chula Vista files a claim against the Street Improvement 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 City of Chula Vista, up to the limit of the bond. 

Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City of Chula Vista, 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.