City of Lake Forest Grading Permit Bond

What is the Purpose of the Grading Permit Bond?

The City of Lake Forest requires contractors performing construction involving grading to obtain a Grading Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of Lake Forest 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 8.30.090, the City Engineer will determine the bond amount in a sum sufficent to correct or eliminate hazardous conditions and/or correct conditions that pose a threat to enviroment resources including but not limited to a threat to water quality. Additional security in an amount determined by the City Engineer may be required to ensure the completion of finish grading under the grading permit as a condition of occupancy and energizing utilities.

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 of Lake Forest?

All permit applications and construction documents should be submitted to the Building Services department.

Does CCIS File the Bond for Applicants?

City of Lake Forest 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 Lake Forest. 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 Lake Forest.

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 Lake Forest files a claim against the Grading 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 Lake Forest, up to the limit of the bond. 

Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City of Lake Forest, 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.