Excavation Contractor Bond - Town of Wallingford, CT in Connecticut

Brief Summary

Wallingford will not issue a street excavation permit until this bond and your insurance are on file with the Town Engineer. Contractors who dig in Town streets regularly can file one bond for the calendar year instead of one per job. You pay a premium rather than tying up cash, and the bond is written on the Town's own Excavation Contractor form.

Wallingford Code Sec. 198-6 requires a performance bond of at least $3,000 before the Town Engineer issues a permit to excavate in any Town street or highway, and the Engineer can require a larger bond based on the quantity to be excavated. Contractors can file the bond and insurance once a year for the calendar year, but each excavation still needs its own permit. The obligee is the Town of Wallingford.

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How to Apply for a Excavation Contractor Bond:

• Ask the Wallingford Department of Engineering what penal sum it requires. The minimum is $3,000 and the Engineer may require more.
• Decide whether to file a single bond for the calendar year or a bond for one excavation.
• Apply for the bond in the contractor's exact legal name.
• Have the surety complete the Town of Wallingford Excavation Contractor surety bond form.
• File the bond and evidence of public liability insurance with the Town Engineer.
• Submit an Excavation Permit Application with a sketch or drawing for each separate excavation.
• Pay the permit fee under Sec. 198-3 unless an exemption applies.

Detailed Information About the Connecticut Excavation Contractor Bond:

The $3,000 is a floor, not the amount

Sec. 198-6 of the Wallingford Code sets a performance bond in the minimum amount of $3,000, or in greater amounts if required by the Engineer. The Engineer sets the amount in relation to the quantity to be excavated. Ask the Department of Engineering what penal sum it wants before the bond is written, because the Town's bond form leaves that line blank.

One annual bond, but still one permit per dig

Contractors and public service corporations may skip filing a separate bond and insurance policy for each excavation by filing them annually with the Engineer. The ordinance ties all such bonds and insurance coverages to the calendar year, and renewals of the insurance evidence must be filed with the Engineer before January 1 of each year. An application must still be made for a permit for each separate excavation.

What the bond guarantees

The bond is conditioned on the applicant backfilling all excavations and restoring the street or highway to a condition approved by the Town Engineer, and on saving the Town of Wallingford harmless from liability, damages and costs tied to the permit or to any act or omission of the permittee. Under Sec. 198-9.2, the permittee guarantees the repaired patch during the life of the temporary patch and for 120 days after the Engineer accepts the permanent patch. If repairs are needed during that 120 day period, the guarantee runs an additional 60 days. The ordinance says the performance bond must include these maintenance conditions.

The Town's Excavation Contractor surety bond form runs from a stated start date until released by the Town Engineer or an authorized representative. If work is not completed three days after a second written notice, the Town will complete it and bill the permit holder.

Insurance and other filing items

Along with the bond, the applicant files evidence of public liability insurance of not less than $100,000 for one person, $300,000 for one accident and $50,000 for property damage. Permit applications are made on forms provided by the Town Engineer with a sketch or drawing of the work. Sec. 198-3 sets permit fees of $5 for the first 200 square feet of excavation and $5 for each additional 400 square feet.

Who is exempt

The Wallingford Highway Department is exempt from the article. Private contractors doing work for the Town under the supervision of the Town Engineer pay no permit fee. Other municipal departments and utilities are covered by the article, but their permit fees are waived when they excavate with their own work force and equipment.

Cost of the bond

The premium is a fraction of the penal sum the Engineer sets. The surety prices it after reviewing the owner's credit and the contractor's experience.

Eligibility and Requirements for a Connecticut Excavation Contractor Bond:

• Performance bond of at least $3,000, or a larger amount set by the Town Engineer.
• Town of Wallingford named as obligee on the Town's Excavation Contractor bond form.
• Public liability insurance of at least $100,000 per person, $300,000 per accident and $50,000 property damage.
• Insurance evidence renewed with the Engineer before January 1 of each year for annual filers.
• Maintenance guarantee of 120 days after acceptance of the permanent patch, built into the bond.
• Owner credit review by the surety to set the premium.

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