County of Tulare Encroachment Permit Bond
What is the Purpose of the Encroachment Permit Bond?
The County of Tulare requires contractors performing encroachment in the County to obtain an Encroachment Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the County of Tulare 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 3-07-1210, the Road Commissioner shall fix the amount of said bond based on his estimate of the actual cost to the County to complete the work and repair the highway in accordance with the terms and conditions of the permit if the permittee fails to do so; provided, however, that the Road Commissioner shall not fix an amount less than One Thousand Dollars ($1,000) nor more than Twenty-Five Thousand Dollars ($25,000) for each permit.
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* |
|---|---|
| $1,000 | $100+ |
| $25,000 | $250-$1,875 |
*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 Tulare?
Per Municipal Code 3-07-1175, applications should be submitted to the County Road Commissioner and include the following information:
- The name and address of the applicant.
- The name and address of the contractor if the proposed work is to be done by a contractor.
- The location, purpose, extent and nature of the proposed work.
- The period of time when the proposed work will be performed.
- The materials to be used in performing the work.
- Such other information, including plats, plans and specifications, as the Road Commissioner may require.
Permits are issued upon receipt and review of a completed application accompanied by a Surety bond.
Does CCIS File the Bond for Applicants?
County of Tulare 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 Tulare. 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 Tulare.
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 Tulare files a claim against the Encroachment 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 Tulare, up to the limit of the bond.
Unlike insurance policies that protect contractors from unforeseen events, this bond protects the County of Tulare, 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.
