Street Opening Permit Bond - City of Erie, PA in Pennsylvania

Brief Summary

Erie sizes this bond by the cut, not by the contractor. Each opening carries $5,000 of bond, larger projects are topped up by the square yard, and the total never has to exceed $25,000 in a year. A contractor who digs in Erie often can carry one calendar year bond and stop buying a new one for every job.

The City of Erie requires a corporate surety bond from every person other than a public utility company who opens a city street, including contractors working for city authorities. Under Section 901.05 of the Codified Ordinances the bond is $5,000 per cut, with additional bonding at $25 per square yard when a single project's excavation and restoration exceeds $5,000, and the aggregate required in a year does not exceed $25,000.

We can help with all Pennsylvania bonds!

How to Apply for a Street Opening Permit Bond:

• File a written street opening application with the City Engineer, signed by the person seeking the permit.
• Count the cuts you expect to make and bond $5,000 for each.
• For a project whose excavation and restoration exceed $5,000, add bonding at $25 per square yard of actual excavation, less the $5,000 already bonded.
• Remember that the aggregate required in a year does not exceed $25,000.
• If working for a city authority, have the bond countersigned by that authority's director or chairman.
• Provide liability insurance of at least $1,000,000 per accident and $2,000,000 aggregate.
• Pay the $175 permit and inspection fee and any degradation fee, plus any balance owed for prior excavations.

Detailed Information About the Pennsylvania Street Opening Permit Bond:

How the bond amount works

Erie sets the bond in Article 901 of its Codified Ordinances, the street excavation rules administered by the City Engineer. Section 901.05(b) states that the amount of the surety bond shall be $5,000 per each additional cut unless the street excavation and restoration work for a single project exceeds that amount. When it does, the permittee secures additional bonding equal to the difference between $5,000 and $25 per square yard of the actual size of the excavation. The aggregate of individual bonds in a given year is not required to exceed $25,000, so a contractor with steady work in the city reaches a ceiling.

Who posts it and who does not

Section 901.05(a) applies to all persons other than public utility companies. That includes private contractors, plumbers running laterals, property owners and contractors performing work for city corporate authorities. Where the work is done under an agreement with a city authority, the bond must be countersigned by the director or chairman of that authority. The bond must be a properly executed corporate surety bond from an approved surety company licensed to do business in Pennsylvania.

Term and guarantee

The bond covers street opening work for one calendar year. The obligation it secures runs longer. Section 901.16 requires the permittee to guarantee and maintain the work for 36 months from completion of the restoration and replacement work, so the surety is backing work that can come due well after the permit closes.

Fees and insurance that go with it

The permit and inspection fee under Section 901.06 is $175, doubled to $350 if work is done without a permit. A degradation fee is charged per square yard of pavement disturbed, set at $50 within the cartway and $28 outside it. Section 901.04 requires liability insurance of at least $1,000,000 per accident and $2,000,000 aggregate, and all money owed the city for prior excavations must be paid before a new permit issues. Permits are void if the work is not finished within 12 months.

Eligibility and Requirements for a Pennsylvania Street Opening Permit Bond:

• City of Erie named as obligee.
• Corporate surety bond from an approved surety company licensed in Pennsylvania.
• Bond term of one calendar year.
• 36 month guarantee of restoration work under Section 901.16.
• Public utility companies are not subject to this bond under Section 901.05(a).
• Underwriting based on the applicant's credit, financial strength and excavation experience.

Pennsylvania Street Opening Permit Bond FAQs:

Official and Additional Resources for the Pennsylvania Street Opening Permit Bond: