Surety Bond Encyclopedia

Construction, Demolition, Recycling Permit Bond - City of Irvine, CA in California

Brief Summary

Irvine holds a refundable deposit on every covered building project until the contractor proves the construction and demolition debris was diverted from landfill. The City accepts a surety bond in place of a check, so a builder can keep up to $50,000 of project cash working instead of sitting with the City until the Final Report is approved.

The City of Irvine requires a refundable deposit, posted by check or surety bond at permit issuance, on projects subject to its Construction and Demolition Debris Recycling and Reuse Ordinance (07-18). The amount is $1.00 per square foot, capped at $50,000. The City of Irvine is the obligee, and the security is released once the City approves the Final Report and proof of waste diversion.

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How to Apply for a Construction, Demolition, Recycling Permit Bond:

  • Confirm the project is a covered type on the City's Construction and Demolition Waste Assessment form.
  • Complete and obtain approval of the Waste Management Plan.
  • Calculate the bond amount at $1.00 per square foot, not to exceed $50,000.
  • Have the Plan Check Number, property description and estimated cost of work ready for the bond form.
  • Complete the bond application, review the quote and receive the executed, notarized bond.
  • Post the bond at permit issuance, then file the Final Report and proof of diversion to have it released.

Detailed Information About the California Construction, Demolition, Recycling Permit Bond:

How the amount is figured

The deposit is not a flat figure. The City of Irvine sets it at $1.00 per square foot of the project, with a maximum of $50,000. A 3,000 square foot home carries a $3,000 deposit. Any project large enough to exceed the cap is held at $50,000. The City lets the applicant post the deposit by check or by surety bond, and a bond keeps that cash free for the life of the project.

Which projects are covered

Irvine's Construction and Demolition Waste Assessment form lists the projects that must obtain an approved Waste Management Plan and post the bond at permit issuance: a new single family or multifamily residential main building or accessory building, a remodel or renovation of an existing residential building that adds conditioned area or volume, and any nonresidential project subject to a building permit. The same form notes that projects with demonstrably small volumes of anticipated debris may be exempted, so ask the City before assuming a small job is covered or excused.

What the bond guarantees

The bond guarantees that the principal will comply with the City's recycling and diversion rules for construction and demolition waste in Title 6, Division 7 of the Irvine Municipal Code, adopted through Ordinance 07-18 and aligned with CALGreen sections 4.408, 5.408 and 5.713.8. Residential projects must divert 75 percent of nonhazardous concrete and asphalt debris and 65 percent of all other construction, demolition, excavated soil and land clearing debris. Nonresidential projects must divert 100 percent of nonhazardous excavated soil and land clearing debris, 75 percent of nonhazardous concrete and asphalt, and 65 percent of all other nonhazardous construction and demolition debris.

Getting the security back

When the project is complete, the contractor submits the Post-Project Final Report and Compliance Form with proof of diversion. Once the City approves it, the deposit or bond is released. Debris should go through a hauler on the City's approved franchise hauler list and to a listed recycling facility so the receipts support the report.

Filling out the City's bond form

The City's surety bond cover sheet example names the City of Irvine as obligee and calls for the principal's name and address, the surety's name and state of organization, the Plan Check Number, a property description, the estimated cost of work, signatures and seals from both principal and surety, and notarial acknowledgments. Confirm the current form and filing steps with the City's permit staff at CDAC@cityofirvine.org before the bond is issued.

Eligibility and Requirements for a California Construction, Demolition, Recycling Permit Bond:

  • City of Irvine named as obligee.
  • Bond amount of $1.00 per square foot with a $50,000 maximum.
  • Signatures, seals and notarial acknowledgments from both the principal and the surety.
  • Diversion of debris at the percentages the City sets for residential or nonresidential work.
  • Use of an approved franchise hauler and a listed recycling facility.
  • Premium set by surety underwriting based on the bond amount and the applicant's credit and project history.

California Construction, Demolition, Recycling Permit Bond FAQs:

How much is the bond?

$1.00 per square foot of the project, capped at $50,000. The City accepts either a check or a surety bond for the deposit.

Which projects need it?

New residential main or accessory buildings, residential remodels that add conditioned area or volume, and nonresidential projects subject to a building permit. The City may exempt projects with demonstrably small volumes of anticipated debris.

When is it posted and when is it released?

The bond is posted at permit issuance after the Waste Management Plan is approved. It is released once the City approves the Final Report and proof of waste diversion. Refund and final report questions go to CDRecycling@cityofirvine.org.

How is the premium set?

The surety prices the bond from the bond amount and the principal's credit, finances and track record completing projects. Because the amount scales with square footage, the quote does too.

What happens if the diversion targets are not met?

The bond guarantees compliance with the City's construction and demolition recycling rules. The City releases the security only after it approves the Final Report and proof of diversion, so keep haul tickets and facility receipts from day one.

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