Street Opening Bond - City of Albany, NY in New York

Brief Summary

Albany does not ask for a bond on every street cut. It asks once the job gets big, when the opening fee reaches $2,500, and then the bond is sized at 10% of the expected cost of repair rather than a fixed figure. Knowing that before you apply keeps a larger excavation permit from stalling at the Department of General Services counter.

The City of Albany requires a permit from the Department of General Services for any opening or pavement removal in a street, sidewalk, curb or other public place. Under Albany City Code section 323-66, when the opening fee is $2,500 or more the Commissioner or a designee may require a performance bond of 10% of the expected cost of repair. The bond is filed with the permit application at One Conners Boulevard, Albany, New York 12204.

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How to Apply for a Street Opening Bond:

• Estimate the square footage of the opening. At $5 per square foot, a fee of $2,500 or more triggers the bond.
• Prepare an estimate of the expected cost of repair, since the bond is 10% of that figure.
• Have the legal name of the contractor or utility exactly as it will appear on the permit application.
• Complete the bond application and review the quoted premium.
• Obtain the $1,000,000 certificate of insurance naming the City of Albany as a named insured, plus workers' compensation and disability coverage proof.
• File the executed bond with the Street and Sidewalk Opening Application and the $100 application fee at the Department of General Services, One Conners Boulevard, or by email to DGSPermits@albanyny.gov.
• Confirm the current bond form and filing steps with DGS at 518-427-7480 before the bond is issued.

Detailed Information About the New York Street Opening Bond:

When the bond applies

Albany City Code Chapter 323, Article III governs pavement openings. Section 323-66 says no person other than a duly authorized City officer or employee may open or remove any pavement or sidewalk in a street, avenue, alley, curb or public place without a permit from the Commissioner of General Services or a designee.

The opening fee is $5 per square foot. Should an opening require a fee of $2,500 or more, the Commissioner or designee may require the party making the opening to post a performance bond of 10% of the expected cost of repair. At $5 per square foot, that threshold is reached at about 500 square feet of disturbance. The Department of General Services application, updated August 2023, states it plainly as a 10% bond required for any application that surpasses $2,500.

How the bond amount is set

There is no flat bond figure. The amount is 10% of the expected cost of repairing the opening, so a large utility or contractor excavation carries a larger bond than a modest one. Have your repair estimate ready when you request the bond so the surety can write it to the correct amount.

What the bond guarantees

The bond backs the permittee's obligations under Article III. Section 323-70 requires the permittee to replace existing pavement with the same paving materials removed. Section 323-72 places a continuing duty on the permittee to keep the area free from settlement or other defects caused by the opening, and if repairs are not made within five days after written notice, the City may do the work and charge the permittee. The DGS application also requires the permittee to guarantee permanent restoration work for three years from the City's date of acceptance.

Other requirements that sit alongside the bond

The application fee is $100. Section 323-69 requires a certificate of insurance of $1,000,000 designating the City as a named insured, and the application also requires proof of workers' compensation and disability coverage. Excavations on thoroughfares must be filled and compacted or properly plated within 24 hours, and final pavement repairs must be made within 14 calendar days after temporary repairs. Emergency openings must be followed by a permit filing within 72 hours. Permits are not transferable.

Section 323-75.1 restricts new openings within five years after the City completes construction on a street, unless the applicant shows necessity or the work is an emergency.

How premium is set

The premium is based on the bond amount, which depends on your expected repair cost, and on the surety's review of the contractor or utility, including credit and experience with restoration work.

Eligibility and Requirements for a New York Street Opening Bond:

• City of Albany Department of General Services named as obligee.
• Bond amount of 10% of the expected cost of repair.
• Required when the opening fee is $2,500 or more, under Albany City Code section 323-66.
• Principal name on the bond matching the permit application exactly.
• Restoration work guaranteed for three years from the City's date of acceptance.

New York Street Opening Bond FAQs:

Official and Additional Resources for the New York Street Opening Bond: