Surety Bond Encyclopedia

Street Opening Performance and Guarantee Bond - City of Jackson, MI in Michigan

Brief Summary

In Jackson the bond question comes down to one thing: are you on the city's prequalified list? If you are not, any permit for a pavement cut, curb work or street excavation needs a Performance and Guarantee Bond attached before the Engineering Division signs off. Having the bond ready with your right-of-way application keeps the job from sitting while the permit waits.

The City of Jackson, Michigan requires a Street Opening Performance and Guarantee Bond from contractors who cut pavement, work on curbs or excavate in a city street, unless the contractor is prequalified with the city. The bond is attached to the Application and Permit for Construction or Activity within Street Right-of-Way filed with the Engineering Division, and it stands behind the contractor's duty to do the work to city specifications and restore the street, sidewalk, parkway and lawn afterward.

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How to Apply for a Street Opening Performance and Guarantee Bond:

Check with the Jackson Engineering Division whether your company is prequalified. If not, the bond is required.
Confirm the required bond amount and current bond form with the Engineering Division.
Apply for the bond with the City of Jackson as obligee and the business name exactly as it appears on the permit application.
Obtain liability insurance at the limits the permit requires, $1,000,000 per occurrence and $2,000,000 aggregate for underground or street work.
Attach the executed bond to the Application and Permit for Construction or Activity within Street Right-of-Way.
Call MISS DIG at least 72 hours before excavation and give the city at least 2 hours notice for inspections.

Detailed Information About the Michigan Street Opening Performance and Guarantee Bond:

Prequalified contractors are the exception

The City of Jackson's Right-of-Way Permits page states that for pavement cuts, curb work and street excavation the contractor must be prequalified or provide a Performance and Guarantee Bond. A contractor who is not prequalified with the city posts the bond on this page. If you are unsure of your status, ask the Engineering Division before you apply for the permit.

What the bond stands behind

The city's right-of-way permit spells out what the contractor takes on. All work must comply with City of Jackson specifications, and the applicant pays to remove or alter work that does not. The applicant is responsible for restoring the street surface, sidewalk, parkways and lawns, and for any damage to property caused by the permitted work. The applicant must also provide, erect and maintain the barricades, lights, advance warning signs and cones needed under Michigan traffic control standards. The Performance and Guarantee Bond gives the city a surety behind those obligations, both for finishing the work properly and for the condition of the restored street after it is done.

Filing with the permit

The bond is listed as an attachment on the city's Application and Permit for Construction or Activity within Street Right-of-Way, filed with the Engineering Department at 161 W. Michigan Ave., Jackson, MI 49201. The City of Jackson is the obligee. Confirm the required bond amount and the current bond form with the Engineering Division before the bond is issued.

Insurance and other permit conditions

The permit requires commercial general liability and automobile liability coverage of at least $500,000 per occurrence and $1,000,000 aggregate, rising to $1,000,000 per occurrence and $2,000,000 aggregate for underground or street work. A standard permit is valid for 30 days unless otherwise specified. Inspections need at least 2 hours notice at (517) 788-4160, and you must call MISS DIG at (800) 482-7171 at least 72 hours before digging. City Code Sec. 17-78 prohibits construction noise from 6 pm to 7 am and on Sundays. Work touching water service requires coordination with the Water Department at (517) 788-4090.

Eligibility and Requirements for a Michigan Street Opening Performance and Guarantee Bond:

City of Jackson, Michigan named as obligee.
Bond conditioned on work that meets City of Jackson specifications and full restoration of the right-of-way.
Commercial general liability and automobile liability insurance meeting the permit minimums.
Traffic control devices provided and maintained to Michigan standards throughout the work.
Surety review of the contractor's credit and financial strength before the bond is issued.

Michigan Street Opening Performance and Guarantee Bond FAQs:

Does every contractor working in a Jackson street need this bond?

It applies to pavement cuts, curb work and street excavation. Contractors prequalified with the City of Jackson are the exception. Everyone else provides a Performance and Guarantee Bond with the right-of-way permit.

What does the bond guarantee?

That the work is done to City of Jackson specifications and that the street surface, sidewalk, parkways and lawns are restored, with the contractor responsible for any damage to property caused by the work. If the contractor does not make it right, the city can look to the surety.

How much is the bond?

Confirm the required amount and the current bond form with the City of Jackson Engineering Division before the bond is issued, so the bond matches what the permit reviewer expects.

What insurance does the permit require?

At least $500,000 per occurrence and $1,000,000 aggregate in commercial general and automobile liability, or $1,000,000 per occurrence and $2,000,000 aggregate for underground or street work.

How is the premium set?

The surety prices a performance and guarantee bond on the bond amount and on its review of the contractor, including credit, financial statements for larger amounts, and experience with similar work.