The County of Fresno requires contractors performing encroachment in the county to obtain an Encroachment Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the County of Fresno that all contracted work will be completed on time and the jobsite will be returned to its original condition.
Per Municipal Code 13.08.020, applicants may be required to provide the County with a bond in an amount no greater than one hundred (100%) percent of the estimated cost of the project.
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 permit applications to the Director of Public Works. The application must specify the nature of the project, its exact location, dimensions, plot plan and profile as specified by Municipal Code 13.08.020.
County of Fresno 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 Fresno. 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 Fresno.
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 Fresno files a claim against the Encroachment Permit Bond, the Surety company will investigate the legitimacy of the claim. 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 Fresno, up to the limit of the bond.
Unlike insurance policies that protect contractors from unforeseen events, this bond protects the County of Fresno, 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.