City of Oakland Grading and Erosion Control Permit Bond

What is the Purpose of the Grading and Erosion Control Permit Bond?

The City of Oakland requires contractors performing grading and erosion control in the city to obtain a Grading and Erosion Control Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of Oakland 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 12.12.022, the bond amount for grading and excavation shall be in the sum of $25,000.00 or as determined by the Director of Public Works. 

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 Oakland?

Permits are issued by the Planning and Building Department. Permits are reviewed by the department for approval before being issued. The timeframe for approval depends on the complexity of the project. All applicable fees are due upon the filing of an application. Payments of fees may be made via cash, personal check, credit card or money order.

Does CCIS File the Bond for Applicants?

City of Oakland 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 Oakland. 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 Oakland.

Does This Bond Expire?

Per Municipal Code 12.12.022, each deposit or bond shall be retained by the City for a period of three years after the satisfactory completion of the excavation.

Claims Information

If the City of Oakland files a claim against the Grading and Erosion Control 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 Oakland, up to the limit of the bond. 

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