Encroachment Permit Bond - City of San Jose, CA in California

Brief Summary

San Jose sizes this bond to your job, not to a flat figure. The Director of Public Works wants bonds equal to 100 percent of the estimated cost of the right of way work, one for performance and one for labor and materials. A surety bond lets you meet that without tying up the full construction cost in cash with the City.

Anyone building or rebuilding within San Jose's public right of way or a public easement needs a Public Works permit under Chapter 13.36 of the San Jose Municipal Code. Section 13.36.070 requires performance and labor and materials bonds of 100 percent of the estimated construction cost, approved by the Director of Public Works. A cash completion deposit of at least 5 percent of the estimated cost is also collected.

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How to Apply for a Encroachment Permit Bond:

• Get the other permits the project needs first, since no encroachment permit issues without them.
• Obtain the City's accepted estimate of construction cost for the right of way work.
• Apply for a performance bond and a labor and materials bond, each at 100 percent of that estimate.
• Confirm the City's bond form with San Jose Public Works before the surety executes it.
• Submit the executed bonds for approval by the Director of Public Works.
• Pay the completion deposit, service cost recovery fee and any special cost charges.

Detailed Information About the California Encroachment Permit Bond:

How the bond amount is set

San Jose does not publish one bond figure for right of way work. Section 13.36.070 of the Municipal Code ties it to the project: bonds equal to 100 percent of the estimated construction cost, assuring performance and payment for labor and materials. The Director of Public Works approves the bonds before the permit issues. Your bond amount is the estimate the City accepts for your plans.

Small jobs and cash in place of bonds

Under Section 13.36.060, when the estimated cost is less than $5,000, the Director may require a 100 percent cash completion deposit instead of bonds. On larger jobs a completion deposit of not less than 5 percent of the estimated cost is still required, and the Director can raise it where public safety calls for it. If the work is not finished to permit conditions, the City can hire the work out and pay from that deposit.

Other security the City may ask for

Section 13.36.080 adds a removal deposit or other security, in an amount the Director sets, to cover removing the encroachment and restoring the right of way if the permittee fails to maintain or remove it. The Director can reduce or waive it with written findings. The City Risk Manager sets any insurance requirement under Section 13.36.100, and the City must be named as additional insured.

What the bond protects

If a permit is suspended and the permittee does not clear the right of way, Section 13.36.030 lets the City do the work and recover its costs from deposits or from the surety on its bond. The permittee also indemnifies the City and is responsible for damage to public improvements, utilities and survey monuments.

Before you apply

No encroachment permit issues until every other permit the work needs has been obtained. Confirm the bond form, the accepted cost estimate and the filing steps with San Jose Public Works before the bond is written.

Eligibility and Requirements for a California Encroachment Permit Bond:

• City of San Jose named as obligee.
• Bond amount equal to 100 percent of the estimated construction cost.
• Separate coverage for performance and for labor and materials.
• Cash completion deposit of at least 5 percent of the estimated cost.
• Insurance as set by the City Risk Manager, with the City as additional insured.

California Encroachment Permit Bond FAQs:

Official and Additional Resources for the California Encroachment Permit Bond: