City of Modesto Grading Permit Bond
What is the Purpose of the Grading Permit Bond?
The City of Modesto 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 Modesto 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 7-1.701, the bond cost shall be in an amount that the Public Works Director estimates and determines to be necessary to complete all of the improvements or mitigations required.
The bond cost for the contractor is typically between 1%-7.5% depending on the contractor’s personal credit score.
| Bond Amount | Bond Cost* |
|---|---|
| 100% Estimated Cost of Work | 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 Modesto?
A contractor may apply for a grading permit at any time, but the permit will not be issued until improvement plans are submitted and approved by the City Engineer. Contents of the application must include:
- The name, address and telephone number of the applicant and the applicant’s engineer.
- The address and parcel number of the location for which the permit is sought.
- A copy of all entitlements granted for the property by the City, including conditions of approval and the environmental documentation.
- A copy of the submitted NOI for the site and Waste Discharge Identification number, if applicable.
- A local SWPPP conforming with the requirements of Section 5-10.204.
- Plans conforming with the requirements of Section 5-10.304.
- Specifications conforming with the requirements of Section 5-10.305 if the Director expressly requires this information.
- Right of entry conforming with the requirements of Section 5-10.306.
Fees conforming with the requirements of Section 5-10.307.
Does CCIS File the Bond for Applicants?
City of Modesto 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 Modesto. 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 Modesto.
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 Modesto 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 Modesto, up to the limit of the bond.
Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City of Modesto, 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.
