City of San Luis Obispo City Curb, Gutter, Sidewalk and Road Improvements Permit Bond

What is the Purpose of the City Curb, Gutter, Sidewalk and Road Improvements Permit Bond?

The City of San Luis Obispo requires contractors performing construction involving city curbs, gutter, sidewalks and road improvements in the city to obtain a City Curb, Gutter, Sidewalk and Road Improvement Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of San Luis Obispo 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 12.16.050, prior to the installation of the required curb, gutter and sidewalks, a certified check or cash in an amount to be fixed by the director shall be deposited with the city to guarantee such installation. In the case of structures which are already occupied and which, due to the extent of the construction, require the installation of street improvements, the owner or developer shall post (prior to issuance of the building permit) a bond or other security in a form acceptable to the city attorney in an amount equal to the cost to install the street improvements.

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.

Does CCIS File the Bond for Applicants?

City of San Luis Obispo 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 San Luis Obispo. 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 San Luis Obispo.

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 San Luis Obispo files a claim against the City Curb, Gutter, Sidewalk and Road 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 of San Luis Obispo, up to the limit of the bond. 

Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City of San Luis Obispo, 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.