Surety Bond Encyclopedia

Street Opening Permit ($2,000) Bond - City of Portland, OR in Oregon

Brief Summary

Portland does not want a new bond for every street cut. One $2,000 Street Opening Bond, filed once with the Portland Bureau of Transportation and approved by the city attorney, can stand behind every excavation permit your company pulls until the bond is cancelled. Get it filed before the first job and the permit desk stops being the bottleneck.

The City of Portland requires an approved street opening bond from anyone applying for a street opening permit or a sewer connection permit in the right-of-way. The PBOT bond form sets the amount at $2,000, names the City of Portland as obligee, and guarantees that backfill and restoration are done properly and that the street stays in good repair for two years after the work is completed.

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How to Apply for a Street Opening Permit ($2,000) Bond:

Use the current PBOT Street Opening Bond form with the City of Portland as obligee and a penal sum of $2,000.
Enter the bonded company's exact legal name as the principal.
Have the owner or an officer of the company sign as principal.
Have the surety's attorney-in-fact sign and attach the power of attorney.
Mail the original signed bond to PBOT UCI at 1120 SW 5th Ave Suite 1331, Portland, OR 97204. Faxed copies are not accepted.
Allow 5 to 6 business days for processing and city attorney approval before the first permit can issue.

Detailed Information About the Oregon Street Opening Permit ($2,000) Bond:

One bond, many permits

The most common mistake is treating this as a per job bond. PBOT's own instructions say the Street Opening Bond may serve as a guarantee for multiple permits involving excavation in the right-of-way until it is cancelled. PBOT policy TRN-10.22 describes it the same way: contractors obtain an annual street opening bond from a bonding agent that covers any work in the public right-of-way.

What the $2,000 bond promises

The bond form runs to the City of Portland, a municipal corporation of the State of Oregon, in the sum of $2,000. The principal agrees to follow the City code and ordinances that regulate the work, remove surplus sand, earth, rubbish and other material right away, restore the street to the satisfaction of the City Engineer, and keep that portion of the street in good repair for two years from the date the work is completed. That two year tail is why the bond stays in force after the trench is closed.

Who posts it and the alternatives

TRN-10.22 applies to anyone applying for a street opening permit or a sewer connection permit in the right-of-way. Contractors use the surety bond. Individual property owners may apply for a cash bond instead. Separately, Portland City Code 17.56.010 lets a railway company or other public utility holding revocable permits for the use of streets file a written undertaking with the City Auditor in the penal sum of $5,000, without sureties, in place of individual permit bonds.

Filing details that cause delays

The owner or an officer of the bonded company signs as principal, and an attorney-in-fact signs for the surety with a power of attorney attached. PBOT asks for the original signed form mailed to the Portland Bureau of Transportation, UCI, 1120 SW 5th Ave Suite 1331, Portland, OR 97204, and the policy states faxed copies are not accepted. The city attorney must approve the bond before any permit issues, so allow the 5 to 6 business days PBOT quotes for processing. The bond cannot be cancelled without 30 days written notice to the City Engineer.

Eligibility and Requirements for a Oregon Street Opening Permit ($2,000) Bond:

Required for street opening permits and sewer connection permits in the public right-of-way.
Guarantees proper backfill, street restoration and two years of good repair after completion.
One bond can cover multiple excavation permits until it is cancelled.
Cancellation requires 30 days written notice to the City Engineer.
Individual property owners may use a cash bond in place of a surety bond.
Public utilities holding revocable street permits may file a $5,000 written undertaking without sureties under City Code 17.56.010.

Oregon Street Opening Permit ($2,000) Bond FAQs:

Do I need a new $2,000 bond for each street opening permit?

No. PBOT's instructions say the Street Opening Bond may serve as a guarantee for multiple permits involving excavation in the right-of-way until it is cancelled. Contractors keep one bond on file.

How long does the bond stay on the hook after a job is finished?

The bond guarantees that the street remains in good repair for two years from the date the work is completed. Cancelling the bond takes 30 days written notice to the City Engineer.

I am a homeowner replacing my own sewer lateral. Do I need a surety bond?

PBOT policy TRN-10.22 lets individual property owners apply for a cash bond instead of buying a surety bond. Contractors doing the same work use the surety bond.

Can I fax the signed bond to speed things up?

The policy states faxed copies of executed bonds are not accepted and the original signed form must be submitted. Mail the original to PBOT UCI and allow 5 to 6 business days, since the city attorney must approve it before the permit issues.

Does a utility company post this same bond?

Portland City Code 17.56.010 allows a railway company or other public utility with revocable street use permits to file a $5,000 written undertaking with the City Auditor, without sureties, instead of individual permit bonds. Contractors working for a utility should confirm with PBOT which instrument covers their permits.