Excavation Bond - Southington, CT in Connecticut

Brief Summary

Southington will not license a contractor to dig in a town road or right of way until $5,000 of security is on file with the Town Engineer. A surety bond covers that requirement for an annual premium, which keeps your cash free for the separate $2,500 street opening deposit the town also requires.

Any contractor that wants to excavate in the Town of Southington's right of way must hold a license from the Town Engineer, and the license requires a $5,000 surety bond or letter of credit in a form acceptable to the town. The Engineering Department asks for a two year bond. The bond is only one piece of the filing. The contractor also needs a $2,500 cash deposit for street opening repairs, $1,000,000 liability and $1,000,000 property damage insurance naming the town, and a $50 license application fee. Licenses expire every January 1.

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How to Apply for a Excavation Bond:

• Download the contractor license packet from the Southington Engineering Department.
• Buy a $5,000 two year surety bond naming the Town of Southington as obligee, or post a letter of credit.
• Get a certificate of insurance showing $1,000,000 liability and $1,000,000 property damage with the town named as insured.
• Deposit $2,500 in cash with the town for street opening repairs.
• Submit the application, $50 license fee, insurance certificate, bond, equipment list and required signatures to the Town Engineer.
• Pull a separate Excavation Permit, with a sketch, for every job in the right of way.
• Reapply before January 1, when every license expires.

Detailed Information About the Connecticut Excavation Bond:

The bond is not the only security you post

This is what catches new applicants. Section 364-5 of the Southington Code requires $5,000 in security before the Town Engineer will grant a right of way license, and the Engineering Department's license packet accepts a surety bond or letter of credit in a form acceptable to the town. Section 364-7 then requires a separate $2,500 cash deposit, maintained at all times, to cover street opening repairs. When that account is drawn down to 50 percent or less, the town issues no more permits until it is topped back up. The bond does not replace the deposit.

Who needs it

Section 364-11 says no one but a contractor licensed by the Town Engineer, a governmental agency or a public service company may do any work in a public right of way. Section 364-4 lists what the Town Engineer needs before issuing a license: a proper application, a satisfactory bond, evidence of liability insurance, and a showing that the contractor has the equipment, manpower and experience to do the work under town rules.

Who is exempt

Section 364-18 waives the licensing, bonding and insurance requirements for governmental agencies and public service companies. They still pull permits for each job. Utility pole work by a public service company falls outside the chapter, and public service companies may make necessary emergency excavations without first meeting its requirements.

Term and renewal

The Engineering Department's packet states that the bond must be a two year bond, effective for at least two years from the first day of the year. Licenses expire on January 1 following issuance under section 364-9, and a new application is required each time. Build your renewal around the January 1 date.

Permits and your guarantee period

The license lets you apply for permits. Each excavation still needs its own Excavation Permit from the Engineering Department, with a sketch of the work. Under section 364-17 the permittee guarantees the work for 18 months from completion, so claims against your security can come well after the road is patched.

How premium is set

The surety prices the $5,000 bond from the owners' credit and the company's time in business, along with the two year term the town requires. Confirm the current bond form with the Town Engineer's office before the bond is issued.

Eligibility and Requirements for a Connecticut Excavation Bond:

• Bond amount of $5,000.
• Town of Southington named as obligee, on a form acceptable to the town.
• A surety authorized to transact business in Connecticut and approved by the Town Engineer.
• Bond effective for at least two years from the first day of the year.
• Separate $2,500 cash deposit kept at the required level at all times.

Connecticut Excavation Bond FAQs:

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