Single Job Excavation ($10,000) Bond - Town of New Canaan, CT in Connecticut

Brief Summary

New Canaan will not issue a street excavation permit until the bond is on file. A single job surety bond covers one permit without tying up cash, and the quote is based on the amount the Town sets for your opening.

The Town of New Canaan requires a surety bond payable to the Town before it issues a permit to dig in a Town street. Under Section 54-39 of the Town Code the bond equals 100 percent of the estimated cost of restoring the street opening and is never less than $10,000. A single job bond covers one permit. Contractors who open streets often can post an annual bond under Section 54-39C instead.

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How to Apply for a Single Job Excavation ($10,000) Bond:

• File a written excavation permit application under Section 54-37 with the location, purpose, dates and plans of the work.
• Get the Town's estimate of street restoration cost, which sets the bond amount, at least $10,000.
• Apply for the surety bond in the permittee's exact legal name, payable to the Town of New Canaan.
• Submit the bond, the certificate of insurance and the permit fee together.
• Start work within 30 days or the permit expires.
• Keep the street in good condition for 24 months after the work.

Detailed Information About the Connecticut Single Job Excavation ($10,000) Bond:

$10,000 is the minimum, not a flat amount

Section 54-39 of the Street Excavation Ordinance of the Town of New Canaan ties the bond to 100 percent of the estimated cost of restoring the street opening, with a floor of $10,000. A small opening is bonded at $10,000. A larger opening with a higher restoration estimate needs a bond at that higher figure.

The bond runs 24 months past the work

The bond must be written by an authorized surety company, be satisfactory to the Town Attorney, and be conditioned on compliance with the ordinance. Under Section 54-39A the permittee must keep the street in good condition for 24 months after the work, and any settlement in that period is treated as evidence of defective backfilling. A claim paid under the bond does not use it up, so it keeps covering later problems from the same work.

Single job bond or annual bond

The single job bond on this page covers one permit. Section 54-39C lets a principal post an annual bond instead, which stays in force for one year and covers all of the principal's excavation work in Town streets for two years after completion. Section 54-40 also lets the Director require a cash or collateral deposit in place of the bond.

Who needs a permit and who does not

Under Section 54-36 anyone other than an authorized Town officer, agent or employee needs a permit before digging, excavating, tunneling or leaving excavated material in a street. Work done by or for the Town is outside the ordinance. Public utilities must meet the bonding requirement unless exempted under Connecticut General Statutes 16-230. Before work starts the permittee must also show proof of public liability and property damage insurance of $500,000 per person, $500,000 per accident and $100,000 property damage from an insurer authorized in Connecticut. A permit expires if work has not started within 30 days. Confirm the bond amount and current form with the Town before the bond is issued.

Eligibility and Requirements for a Connecticut Single Job Excavation ($10,000) Bond:

• Town of New Canaan named as obligee.
• Bond equal to 100 percent of estimated restoration cost, never less than $10,000.
• Surety company authorized to do business, with the bond satisfactory to the Town Attorney.
• Liability insurance of $500,000 per person, $500,000 per accident and $100,000 property damage.
• Premium based on the applicant's credit and the bond amount set by the Town.

Connecticut Single Job Excavation ($10,000) Bond FAQs:

Official and Additional Resources for the Connecticut Single Job Excavation ($10,000) Bond: