The City of Mission Viejo requires contractors performing grading in the city to obtain a Grading 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.
A grading permit will not be issued unless the permittee submits with the director an approved bond or other approved security in an amount specified in the grading manual. The cost of the bond must be enough to reimburse the city for the estimated costs of removing hazardous conditions and returning the land to its original state. Municipal Code 8.10.710.
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 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.
To obtain a grading permit, an applicant must first file an application in writing to the city director. A grading permit will not be issued unless the permittee submits with the director an approved bond or other approved security in an amount specified in the grading manual. The director will approve the permit application once all city requirements have been satisfied.
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.
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.
If the City of Mission Viejo 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 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.
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