City of Los Angeles Excavation - Lateral Support Permit Bond

What is the Purpose of the Excavation - Lateral Support Permit Bond?

The City of Los Angeles requires contractors performing excavation and lateral support in the city to obtain an Excavation and Lateral Support Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of Los Angeles 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 62.02, a permittee must provide to the Bureau of Engineering cash or a surety bond in an amount determined by the Bureau to compensate the City for damage that may be caused to City property by the excavation.

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

*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.

How Does the Permit Application Process Work With the City of Los Angeles?

All applications for excavation and lateral support must be submitted to the City of Los Angeles Bureau of Engineering for review and approval. Each application must include a plan showing the location and dimensions of the proposed project.

Does CCIS File the Bond for Applicants?

City of Los Angeles 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 Los Angeles. 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 Los Angeles.

Does This Bond Expire?

Per Municipal Code 62.02, the bond must be in effect for a minimum of two years after completion of the permitted work, and if cash is provided instead of a bond, the Bureau of Engineering shall keep the cash for a minimum of two years after completion of the permitted work.  The Bureau of Engineering has the authority to modify for good cause the provisions of this Subdivision pertaining to the length of time it maintains custody of a cash deposit or the length of the effectiveness of a surety bond.

Claims Information

If the City of Los Angeles files a claim against the 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 Los Angeles, up to the limit of the bond. 

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