City and County of San Francisco City and County Street Improvement Permit Bond

What is the Purpose of the City and County Street Improvement Permit Bond?

The City and County of San Francisco requires contractors performing street improvement in the city and county to obtain a Street Improvement Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the City and County of San Francisco 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 Article 6, Section 208, every contractor, including contracting owners, to whom is awarded a contract for street work hereunder, shall upon the execution of such contract file with said Director a bond, approved by him, in a sum not less than ½ of the total amount payable under the contract.

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 and County of San Francisco?

Street Improvement: Applicants for street improvement must submit the corresponding application to the Department of Public Works for review and approval. Applicants must also have a current Business Tax Registration Certificate issued by the City and County of San Francisco’s Tax Collector’s Office, in accordance to Section 1003, of Part III of the San Francisco Municipal Code.

Does CCIS File the Bond for Applicants?

City and County of San Francisco requires wet signatures** on filed bond documents. This means both parties must physically sign the bond prior to sending it in to the City and County of San Francisco. 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 and County of San Francisco.

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 and County of San Francisco 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 and County of San Francisco, up to the limit of the bond. 

Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City and County of San Francisco, 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.