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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
There is no fixed price tag on an Orange County grading bond. The plan checker works the amount out from your own earthwork and drainage cost estimate, so the figure on your plan check comments is the one to bond. A surety bond lets you post that amount for an annual premium instead of tying up cash or a certificate of deposit until the County signs off on the grading.
Orange County will not issue a grading permit until the permittee posts security with the Building Official under County Code section 7-1-829. The amount comes from the Orange County Grading Manual: 30% of the cost of the larger of the cut or fill volume, plus 50% of the cost of drainage, paving and erosion, sediment and chemical control work, plus a 10% contingency, rounded up to the nearest $1,000. The bond runs to the County of Orange and stays in force until the work is accepted.
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Section 7-1-829 of the Orange County Codified Ordinances requires grading permit security in the form and amount set in the Orange County Grading Manual. Subarticle 7.2 of the 2017 Grading Manual sets the formula. Take 30% of the cost of the project cut or fill volume, whichever is greater, add 50% of the cost of the drainage improvements and erosion, sediment and chemical control facilities, then add a 10% contingency and round up to the nearest $1,000. Driveways, parking areas, sidewalks and other paving controlled through the grading permit count as drainage devices. Your engineer supplies the quantities and the plan checker calculates the bond.
The Building Official can lower the amount when the hazards or the nature of the project do not justify the full figure, or raise it up to 100% of those costs where they do. A minimum bond may also be set.
The Building Official may waive security if incomplete or improper grading is unlikely to create a hazard, harm the site or neighboring property, cause drainage, erosion, flooding or siltation problems, or cause geological or environmental damage, or if no permit condition calls for a financial guarantee.
An owner running several grading projects at once, or one after another on the same development, may be allowed a single continuing blanket security in an amount the Building Official sets. Additional security can be required to guarantee finish grading before occupancy and utility release, or the removal of temporary earthen stockpiles.
The County's surety bond form binds the principal and surety to the County of Orange. It is conditioned on compliance with the Grading and Excavation Code and the permit terms, completion of the work within the permit time limit, and reimbursement of any work the Building Official has to do for public safety. If the permittee defaults, the County sends written notice to the permittee and surety. If the work is not done in the time given, the County demands the estimated cost from the surety, plus a mobilization charge. The bond must be notarized for both principal and surety.
Security runs from permit issuance until the Building Official accepts the work and releases it by written notice. On a preliminary permit with ongoing erosion control duties, release waits until the whole site is converted to a precise permit, unless a separate erosion control permit and security are posted.
It depends on your project. The Grading Manual sets it at 30% of the larger of cut or fill cost, plus 50% of drainage, paving and erosion control costs, plus 10%, rounded up to the nearest $1,000. The plan checker gives you the final number.
Yes. Under section 7-1-829 the Building Official may waive security when incomplete or improper grading is unlikely to create hazards, drainage or erosion problems, or geological or environmental harm, or when no permit condition needs a financial guarantee.
Not always. An owner with several concurrent or phased grading projects on one development may be allowed a blanket security covering all of them, in an amount the Building Official sets.
The Grading Manual also allows a cash bond, a time certificate of deposit or a letter of credit, subject to approval by the Building Official.
When the Building Official accepts the completed grading and sends written notice of release. On preliminary permits, release generally waits until the site has been converted to a precise permit.
The surety prices it from the bond amount and the applicant's credit and financial strength. A quote on your calculated bond amount is the only reliable figure.
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