Surety Bond Encyclopedia

Utility Connection Permit Bond - Broward County, FL in Florida

Brief Summary

This is a warranty bond, not a performance bond. It comes at the end of a Broward County Water and Wastewater Services job, when the water, sewer or reclaimed lines you built are turned over to the County. Having it ready keeps your Release for Service from stalling at the finish line.

Developers who build water, wastewater or reclaimed water facilities under a Broward County Utility Connection Permit furnish a Surety Bond (Warranty) to Broward County. The bond amount is the lesser of the actual construction cost of the facilities or $10,000 plus 25 percent of that cost, and it warrants the work against defects for at least one year after the County accepts it in writing.

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How to Apply for a Utility Connection Permit Bond:

  • Total the actual construction cost of the water, wastewater or reclaimed facilities.
  • Calculate the bond amount: the lesser of that cost or $10,000 plus 25 percent of that cost.
  • Use the County's Surety Bond (Warranty) form and name the principal exactly as the permittee on the Utility Connection Permit.
  • Provide owner or company information for the surety's underwriting.
  • Sign entirely in ink or entirely digitally, with a corporate resolution if required.
  • Submit the bond with the Application for Release for Service.

Detailed Information About the Florida Utility Connection Permit Bond:

It is a warranty bond, sized by formula

Many applicants expect a flat permit bond. Broward County Water and Wastewater Services instead requires a Surety Bond (Warranty) whose amount is the lesser of the actual construction cost of the facilities or $10,000 plus 25 percent of that actual cost. On a job costing $100,000, that works out to $35,000. Rounding to the nearest dollar is acceptable. The cost figure comes from the supporting documentation filed with your Application for Release for Service.

Where it fits in the permit process

The Utility Connection Permit covers connections to or changes in the County's potable water, reclaimed water and wastewater systems. The developer's engineer gets plan approval, the developer obtains Connection Construction Approval, WWS inspects the work, and the developer then applies for Release for Service with record drawings. The warranty bond is part of that closeout, because the improvements become County property.

What the bond guarantees

The principal warrants the improvements against defects in workmanship, materials, equipment or construction for not less than one year from the County's written acceptance, and pays all repair costs. Failing to correct a defect, or to start correcting it within 30 days after written notice, counts as a default. So does a notice that the bond will expire before the warranty period ends.

Filing details that cause rejections

The principal's name must match the permittee name on the Utility Connection Permit exactly. Broward County is the obligee. The surety must give the County at least 30 days' notice of any cancellation, expiration or material change. If a corporation signs through someone other than its President, Vice President or CEO, attach a corporate resolution. The bond may be signed in ink or digitally, but not a mix of both.

Eligibility and Requirements for a Florida Utility Connection Permit Bond:

  • Broward County, a political subdivision of the State of Florida, as obligee.
  • Bond amount set by the cost formula in the County's instructions.
  • Warranty period of not less than one year from written acceptance.
  • Surety notice to the County at least 30 days before cancellation or expiration.
  • Principal name matching the Utility Connection Permit exactly.

Florida Utility Connection Permit Bond FAQs:

How is the bond amount calculated?

It is the lesser of the actual construction cost of the facilities or $10,000 plus 25 percent of that cost. For a $100,000 job that is $35,000.

When do I need the bond?

At closeout. It accompanies the Application for Release for Service, after construction and inspection, when the improvements are turned over to the County.

How long does it stay in force?

For the warranty period, which is not less than one year from the date the County accepts the improvements in writing.

Who signs as principal?

The permittee named on the Utility Connection Permit, using exactly the same name.

Official and Additional Resources for the Florida Utility Connection Permit Bond:

Other Broward County, FL Surety Bonds in Florida

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All Florida Utility bonds · All Broward County, FL bonds · All Florida surety bonds