Surety Bond Encyclopedia

Excavation Permit ($25,000) Bond - City of San Francisco, CA in California

Brief Summary

One $25,000 bond covers every excavation permit you pull in San Francisco, not just one job. Post it once when you register with Public Works, keep it current, and you can apply for street excavation permits as the work comes in without tying up $25,000 in cash.

San Francisco Public Works requires anyone excavating in the public right of way to register before applying for an excavation permit and to keep a $25,000 deposit on file, which can be a surety bond, under Article 2.4 of the Public Works Code, Section 2.4.40. A single $25,000 deposit may be used for multiple permits by the same permittee.

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How to Apply for a Excavation Permit ($25,000) Bond:

  • Register with San Francisco Public Works before applying for any excavation permit.
  • Obtain the $25,000 bond naming the City and County of San Francisco as obligee.
  • Provide a current San Francisco Business Tax Registration Certificate.
  • Provide evidence of insurance meeting Public Works Code Section 2.4.23.
  • Give a 24 hour emergency contact and a contact for official correspondence.
  • Confirm the facility owner is a member of Underground Service Alert.
  • If acting for the owner, file signed written authorization from the owner.

Detailed Information About the California Excavation Permit ($25,000) Bond:

One deposit, many permits

Public Works Order 187,005, the City's Regulations for Excavating and Restoring Streets, says applicants must register with the Department before applying for an excavation permit. Registration requires a $25,000 Deposit as defined in Section 2.4.40 of the Public Works Code. The Order defines Deposit as any bond, cash deposit or other security. The permittee must maintain at least $25,000 with the Department, and a single $25,000 deposit may be used for multiple permits by the same permittee.

Who posts it

The permittee posts the deposit. That can be the owner of the facility being installed or repaired, or a contractor acting as the authorized applicant with written authorization from the owner. Excavation permits are not transferable. City departments that excavate keep a $25,000 work order with Public Works instead of a bond.

Other registration items

The deposit is only one part of registration. Applicants also need a current San Francisco Business Tax Registration Certificate, evidence of insurance under Section 2.4.23 of the Public Works Code, a 24 hour emergency contact, a contact for official correspondence and written acknowledgement that the facility owner is a member of Underground Service Alert. Utility excavators must also show the franchise, license or Utility Conditions Permit that lets them occupy the right of way.

What the bond protects

Public Works inspects trenches and issues repair notices. A permittee that fails to repair a trench in the time given can face fines and may forfeit all or part of its deposit so the Department can make the repairs, as described in Section 2.4.72(a) of the Public Works Code.

How premium is set

The surety prices this bond on the credit and financial strength of the contractor or utility posting it, along with its record of completed street work. Confirm the current bond form and filing steps with San Francisco Public Works, Bureau of Street Use and Mapping, before the bond is issued.

Eligibility and Requirements for a California Excavation Permit ($25,000) Bond:

  • Deposit of at least $25,000 kept on file with Public Works.
  • One deposit may cover multiple permits held by the same permittee.
  • Bond in favor of the City and County of San Francisco.
  • Surety authorized to write bonds in California.
  • Bond kept in force for as long as the permittee holds open permits or trench obligations.

California Excavation Permit ($25,000) Bond FAQs:

Do I need a new $25,000 bond for each permit?

No. Public Works Order 187,005 says a single $25,000 deposit may be used for multiple permits by the same permittee.

Can the contractor post the bond instead of the utility owner?

Yes. Either the owner or the authorized applicant can be the permittee, and the permittee must maintain the $25,000 deposit. The contractor needs signed authorization from the owner.

What can the City claim against the bond for?

If a permittee does not repair a trench defect within the time set in a repair notice, it can be fined and may forfeit its deposit or part of it so Public Works can do the repairs.

Do City departments post this bond?

No. Each City department that excavates keeps a $25,000 work order with Public Works instead.

Official and Additional Resources for the California Excavation Permit ($25,000) Bond:

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