Paving or Excavating ($10,000) Bond - City of Homewood, AL in Alabama

Brief Summary

Any contractor cutting into a Homewood street or right of way has to keep this bond in force before the city will issue an excavation permit. A surety bond covers it for an annual premium, and one bond can carry you across every permit you pull during the year.

Section 18-52 of the Homewood code requires anyone permitted to open, cut or excavate in the public way to keep a bond of at least $10,000 continuously in force with the city. The city can require more based on its risk, measured by how many permits the contractor pulls in a calendar year. The bond must be written by a surety authorized to do business in Alabama and approved by the city official.

We can help with all Alabama bonds!

How to Apply for a Paving or Excavating ($10,000) Bond:

• Have proof of the license that covers your excavation or paving work ready for the permit application.
• Estimate how many street or right of way permits you expect to pull this calendar year.
• Ask the city whether $10,000 is enough for that volume or a higher amount applies.
• Complete the bond application and review the premium quote.
• Pay the premium and deliver the executed bond naming the City of Homewood as obligee.
• Pay the permit fee and any required deposit before work begins.

Detailed Information About the Alabama Paving or Excavating ($10,000) Bond:

$10,000 is the minimum, not a fixed figure

Homewood's excavation rules sit in Chapter 18, Article III of its code. Section 18-52, titled Licensing and bonding of excavation contractors, requires each permittee to pay the fees in the city's fee schedule, keep any required funds on deposit with the Public Works Department, and continuously maintain a bond of at least $10,000. The city can set a higher amount depending on its risk, based on the number of permits issued to the applicant in a calendar year. A contractor who pulls many street cut permits should expect the city to look at a larger bond.

Who needs it

Section 18-50 makes it unlawful for anyone other than an authorized city officer to make an opening, cut or excavation in or under any street without a permit. The work must be done by an entity licensed to do it, and proof of licensure has to be shown when the permit application is made. Section 18-59 extends these rules to excavation done under the electrical, gas, building and plumbing codes. Utility contractors, plumbers tying into mains and site contractors working in the right of way all fall within it.

What the bond guarantees

The bond is conditioned on the contractor following all city ordinances and laws related to the work, holding the city harmless from liability arising from the contractor's activities, safeguarding open excavations in the public way, and restoring the work to the city's current specifications when directed. Under Section 18-54, if a permittee fails to install or maintain a required temporary repair, any bond placed with the city is forfeited and no further permits are issued to that permittee.

Confirm the bond amount for your permit volume and the current bond form with Homewood Public Works or Engineering before the bond is issued.

Eligibility and Requirements for a Alabama Paving or Excavating ($10,000) Bond:

• Bond of at least $10,000, set higher at the city's discretion.
• Surety authorized to do business in Alabama.
• Bond approved by the city official.
• Bond kept continuously in force while you hold permits.
• Proof of licensure presented with every permit application.

Alabama Paving or Excavating ($10,000) Bond FAQs:

Official and Additional Resources for the Alabama Paving or Excavating ($10,000) Bond: