Grading Permit Bond - City of Los Angeles, CA in California

Brief Summary

The amount on a Los Angeles grading bond is a calculation, not a flat fee. It runs off the larger of your cut or fill volume on a tiered schedule, plus the cost of drainage and retaining walls. Get the plan check engineer's figure, and a surety bond lets you pull the grading permit without leaving that sum on deposit with the City.

In the City of Los Angeles, the property owner must file a grading bond with the Department of Building and Safety before a permit is issued for 250 cubic yards or more of excavation or fill in a hillside area (LAMC 91.7006.5.1). The amount follows LAMC 91.7006.5.7: a tiered charge based on the greater of excavation or fill volume, plus the cost of required drainage and protective devices such as retaining walls. The bond must be in the owner's name and stays in force until LADBS accepts the work.

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How to Apply for a Grading Permit Bond:

• Confirm the site is in a hillside area and the larger of excavation or fill is 250 cubic yards or more.
• Get the bond amount verified by your LADBS plan check engineer under LAMC 91.7006.5.7.
• Have the bond written in the exact name of the property owner shown on the grading permit application.
• Match the property address and legal description (tract, block, lot) to the application.
• Complete the surety application and pay the premium.
• Have every signature notarized on a separate acknowledgment and attach the surety's power of attorney.
• Present the bond to the plan check engineer, who signs it and routes it to CAO Risk Management for approval.

Detailed Information About the California Grading Permit Bond:

Who has to post it

The trigger is specific. LAMC 91.7006.5.1 requires a bond before LADBS issues a permit for excavation or fill of 250 cubic yards or more of earth in a hillside area. The bond is filed by the owner of the property, not the grading contractor, and the owner on the grading permit application must match the principal on the bond exactly. If the property is held in a trust, the trustee signs as trustee of the named trust.

The Department can waive the bond on the owner's application if the grading is neither actually nor potentially hazardous, if the work is being done to comply with a Department order, or if the applicant shows LADBS that the work will be fully carried out.

How the amount is figured

LAMC 91.7006.5.7 bases the bond on the number of cubic yards in excavation or fill, whichever is greater, and then adds the cost of all drainage and other protective devices the permit requires, such as retaining walls. The earthwork portion is computed this way:

• 250 to 10,000 cubic yards: $1,000 plus $1.00 per cubic yard
• 10,001 to 100,000 cubic yards: $11,000 plus 50 cents per cubic yard over 10,000
• Over 100,000 cubic yards: $56,000 plus 35 cents per cubic yard over 100,000

Your plan check engineer verifies the bond amount and signs the bond, so confirm the figure there before the surety writes it.

What it guarantees and when it ends

The bond guarantees the owner will comply with Article 1 of Chapter IX of the LAMC, meet every condition of the grading permit, and finish the work within the permit's time limit. Extensions granted by the Board of Building and Safety Commissioners do not release the surety. If the owner defaults, LADBS can have the work completed to correct hazardous conditions and recover the cost, including administration and supervision, from the bond.

If ownership changes before grading is done, the new owner has to obtain a new grading permit and post a new bond. LADBS can approve one proportional reduction of the bond once a substantial part of the grading is accepted.

Filing

Use the LADBS Grading Permit Surety Bond form, with three copies for a surety bond. All signatures need separate notary acknowledgments, the surety's power of attorney must be attached, and the bond is scanned to CAO Risk Management for approval before you post it and have the application stamped at the cashier.

Eligibility and Requirements for a California Grading Permit Bond:

• A corporate surety authorized to do business in California.
• City of Los Angeles named as obligee on the LADBS Grading Permit Surety Bond form.
• Bond amount computed under LAMC 91.7006.5.7, including drainage and retaining wall costs.
• Three executed copies for a surety bond.
• A new permit and new bond if the property changes hands before the grading is finished.

California Grading Permit Bond FAQs:

Official and Additional Resources for the California Grading Permit Bond: