City of Bellflower Right-of-Way Permit Bond
What is the Purpose of the Right-of-Way Permit Bond?
The City of Bellflower requires contractors performing construction that constrains a public right-of-way to obtain a Right-of-Way Permit Bond*. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of Bellflower that all contracted work will be completed on time and the jobsite will be returned to its original condition.
The bond covers protection for public health, safety, comfort, convenience and general welfare. Such conditions may include, but are not limited to any or all the following:
- Dedication and improvement of public streets, which improvements may include curbs, gutters, sidewalks and paving.
- Sidewalks, fences, barriers or landscaping to assure the orderly transition from adjacent uses to the approved use.
If the City determines that the work is satisfactory, the bond will be refunded to the applicant. If the work is deemed unsatisfactory, then the town will use the deposit to complete the job itself. If the value of the deposit exceeds the City’s cost, then the excess will be refunded to the applicant. If the value of the deposit is less than the City’s costs, then the City of Bellflower may seek to recover the extra costs from the applicant.
*A Right-of-Way permit with the City of Bellflower does not establish any precedent, waive any right of the City or waive any obligation of the applicant.
How Much Does the Bond Cost?
Per Municipal Code 17.100.050, a right-of-way bond is typically 10% more than what the city estimates it will cost to repair the public area following completion of the project. The bond amount can be calculated by taking the reconstruction cost and multiplying by 1.10.
The bond cost for the contractor is typically between 1%-7.5% depending on the contractor’s personal credit score.
| Bond Amount | Bond Cost** |
|---|---|
| Varies | 1%-7.5% |
**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 Bellflower 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 Bellflower. 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 Bellflower.
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
Should a contractor fail to complete the work specified in the agreed upon contract, the City of Bellflower may choose to pursue the following action against the bond:
- Reimbursement for repair costs: In the event that any damage occurs to City of Bellflower property during the use and/or result of this permit, the applicant will immediately be demanded to restore such property to its original condition. If the City of Bellflower is required to make the repairs, the City will seek reimbursement for the cost of repairs from the permit applicant.
- Voided permit: In order to perform access work, the City requires applicants notify the public works inspector no less than one working day’s advance notice. Failure to obtain an inspection will result in a voided permit and require reapplication.
If the City Bellflower files a claim against the Right-of-Way 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 Bellflower, up to the limit of the bond.
Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City of Bellflower, 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.
