County of Tehama Well Drillers Permit Bond
What is the Purpose of the Well Drillers Permit Bond?
The County of Tehama requires contractors performing construction on wells in the county to obtain a Well Drillers Permit Bond. The bond represents a guarantee by the contractor and the issuing surety company to the County of Tehama that the well will be constructed in in such a manner as to keep the quality of the groundwater from becoming impaired or polluted.
How Much Does the Bond Cost?
Per Municipal Code 9.42.280, the cost of the County of Tehama Well Driller Permit Bond is set at $5,000.
The bond cost for the contractor is typically between 1%-7.5% depending on the contractor’s personal credit score, however, the minimum bond cost will start at $100 regardless of credit score.
| Bond Amount | Bond Cost* |
|---|---|
| $5,000 | $100 |
*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 County of Tehama?
Permit applications should be submitted to the Health Officer of the Tehama County Department of Environmental Health per Municipal Code 9.42.220. Permits are valid for 180 days from the date of issuance.
Does CCIS File the Bond for Applicants?
County of Tehama requires wet signatures** on filed bond documents. This means both parties must physically sign the bond prior to sending it in to the County of Tehama. 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 County of Tehama.
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 County of Tehama files a claim against the Well Drillers 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 County of Tehama, up to the limit of the bond.
Unlike insurance policies that protect contractors from unforeseen events, this bond protects the County of Tehama, 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.
