City and County of San Francisco City and County Supply Contract Permit Bond

What is the Purpose of the City and County Supply Contract Permit Bond?

The City and County of San Francisco requires contractors looking to supply goods and services for construction in the city and county to obtain a Supply Contract 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 supply goods and services will be delivered on time and accurately. The bond also protects the City and County should the business default. 

How Much Does the Bond Cost?

Per Chapter 21, Section 21.11, If required by the Contracting Officer in the Solicitation, an Offer shall be accompanied by a deposit in the form of a certified or cashier's check on a solvent bank, or money order, or bid bond, payable on sight to the City in the amount fixed in the Solicitation, which amount shall not exceed 10 percent of the estimated cost of the Commodities or Services to be furnished.

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?

Applicants for supply contracts 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 Supply Contract 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.