City of Orange Right-of-Way Permit Bond
What is the Purpose of the Right-of-Way Permit Bond?
The City of Orange requires contractors performing excavation and encroachment in the city 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 Orange 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 12.52.050, the cost of public infrastructure improvements shall be estimated in writing by the Director of Public Works and the cost of the security shall be equal to the total estimated cost of the improvement plus fifteen (15) percent to cover the cost of engineering and inspection.
The bond cost for the contractor is typically between 1%-7.5% depending on the contractor’s personal credit score.
| Bond Amount | Bond Cost* |
|---|---|
| 115% 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 Orange?
Applications for encroachment and excavation permits are available from the City Director’s office. Permits must be obtained before work can begin. A separate haul permit is required for importing/exporting materials.
Does CCIS File the Bond for Applicants?
City of Orange 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 Orange. 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 Orange.
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 Orange 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 Orange, up to the limit of the bond.
Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City of Orange, 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.
