City of Gonzales Permit Bond
What is the Purpose of the Permit Bond?
The City of Gonzales requires contractors performing construction in the city to obtain a permit bond applicable to the project. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of Gonzales 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 9.04.010, the Public Works Department will determine a sum sufficent to cover restoration of the area to its original condition should the work be unsatisfactory and not meet the agreed upon specifications.
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.
How Does the Permit Application Process Work With the City of Gonzales?
Contractors looking to apply for a permit with the City of Gonzales must submit the application in writing; addressed and filed with the City Engineer or Director of Public Works. The application must clearly state the natures, extent and location of the excavation proposed and the purpose for which the same is to be made. Once all criteria are met, the City Engineer or Director of Public Works will issue the permit.
Applicants must also submit a Statement of Time of Completion. Said statement must set forth the time for completion of the work. The time for completion may be extended by the city council only upon good cause demonstrated for such extension.
Does CCIS File the Bond for Applicants?
City of Gonzales 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 Gonzales. 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 Gonzales.
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 Gonzales 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 Gonzales, up to the limit of the bond.
Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City of Gonzales, 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.
