Demolition Contractor ($10,000) Bond - Township of Union, NJ in New Jersey

Brief Summary

In the Township of Union, the $10,000 bond is tied to the demolition permit itself, and it is a promise to finish fast. The bond secures completion within seven working days after the required notice to the Township Engineer, with $100 forfeited for every day over. Paying a premium keeps $10,000 of your cash free for the job, and the bond goes in with the permit application to the Construction Code Official.

Chapter 240 of the Township of Union Code makes it unlawful to demolish a house, dwelling, residence building or business building without a written permit. Section 240-7B requires a $10,000 surety bond from a corporation authorized to do business in New Jersey before that permit issues. The bond guarantees 48 hours advance notice to the Township Engineer, completion within seven working days after that, $100 per day for any overrun, repair of damage to public property, and indemnity to the Township. Cash is accepted in lieu of the bond.

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How to Apply for a Demolition Contractor ($10,000) Bond:

• Get the demolition application forms from the Township of Union Construction Code Official.
• Have the property address and the owner's name ready, since the owner and the demolisher both sign the section 240-7A agreement.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the signed $10,000 bond naming the Township of Union as obligee.
• File the bond with the application, the vehicle insurance certificates and the section 240-7D cash or certified check deposit.
• Give the Township Engineer 48 hours notice before starting, then finish within seven working days.

Detailed Information About the New Jersey Demolition Contractor ($10,000) Bond:

When the bond is required

The Township of Union in the County of Union regulates demolition under Chapter 240 of its code, Buildings, Moving of, adopted in 1966. Section 240-2 makes it unlawful for any person to move or demolish, or to begin to move or demolish, any house, dwelling, residence building or business building without first getting a written permit. Section 240-7 lists what must be filed before that permit issues, and subsection B is the $10,000 surety bond. The bond is written by a corporation authorized to do business in New Jersey and runs to the Township of Union.

What the bond secures

This is not a general license bond. It is a performance promise on one job. The permit holder must notify the Township Engineer 48 hours before work starts and then diligently complete the operation within seven working days. Each day, or part of a day, beyond that period costs $100. The bond also covers repair of any damage to public property and indemnifies the Township against losses from granting the permit and from the demolition itself.

Everything else filed with it

Section 240-7 asks for more than the bond. Subsection A is a written agreement signed by the owner and the demolisher to follow the Township's directives. Subsection C requires certificates or policies of insurance for vehicles and apparatus used on the job, with limits of at least $50,000/$100,000 for personal injury and $50,000 for property damage. Subsection D is a separate deposit, by cash or certified check, covering the Township's estimated cost. The Township applies the deposit to its actual cost, and the applicant pays any difference. The bond does not replace that deposit.

Application forms come from the Construction Code Official and are approved by the Township Engineer. Demolition permit fees are set under Chapter 270, Construction Codes, Uniform.

Partial removals

Section 240-20 sets a simpler procedure for removing portions of structures such as accessory buildings, porches and garages. No formal permit application is required under that section, and a $5 permit fee is paid to the Township Clerk. Insurance certificates and approvals from the Board of Health, the Fire Prevention Bureau and the Construction Code Official still apply. Confirm with the Construction Code Official whether the bond is needed on a partial removal before the bond is issued.

How the premium is set

The surety looks at the bond amount, the contractor's credit and its demolition track record. You pay the premium, not the $10,000 bond amount.

Eligibility and Requirements for a New Jersey Demolition Contractor ($10,000) Bond:

• Bond amount of $10,000 under Township Code section 240-7B.
• Surety must be a corporation authorized to do business in New Jersey.
• Cash is accepted in lieu of the bond.
• Vehicle and apparatus insurance of at least $50,000/$100,000 personal injury and $50,000 property damage.
• Separate cash or certified check deposit for the Township's estimated costs.
• Demolition permit fees set under Chapter 270 of the Township Code.

New Jersey Demolition Contractor ($10,000) Bond FAQs:

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