City of Mission Viejo Encroachment Permit Bond

What is the Purpose of the Encroachment Permit Bond?

The City of Mission Viejo requires contractors performing encroachment in the city to obtain an Encroachment Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of Mission Viejo 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?

 A cash deposit, surety bond or other acceptable security is required in an amount determined by the director to be enough to reimburse the city for the estimated costs of restoring the right-of-way to its original condition. Municipal Code 14.03.100.

The amount of the security may also be increased by the Director up to 100% of the cost of the total cut and fill volume and 100% of the drainage improvements and erosion control facilities if the potential hazards or nature of the project justifies such an increased amount

The bond or premium cost is typically 1.0% to 7.5% of the total bond amount and is dependent on the applicant’s 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 Mission Viejo?

To obtain an encroachment permit, an applicant must first file an application in writing to the city director. 

Does CCIS File the Bond for Applicants?

City of Mission Viejo 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 Mission Viejo. 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 Mission Viejo.

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 Mission Viejo files a claim against the Encroachment 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 Mission Viejo, up to the limit of the bond. 

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