Surety Bond Encyclopedia

License to Install Various Public Improvements ($3,000) Bond - Cranston, RI in Rhode Island

Brief Summary

Cranston's $3,000 license bond is a small instrument that sits in front of a lot of work. Curbing, sidewalks and openings in city streets all run through the Director of Public Works, and the bond gives the City a guarantee that a licensed installer will do that work to the City's specifications. At $3,000 it is a quick bond to place, and it lets you start pulling permits.

The City of Cranston requires a $3,000 surety bond from contractors licensed to install public improvements in the city. The bond names the City of Cranston as obligee and guarantees that the licensee will perform work in the public way in compliance with Title 12 of the Cranston Code and the Department of Public Works specifications, and will pay the City for losses caused by a failure to do so.

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How to Apply for a License to Install Various Public Improvements ($3,000) Bond:

  • Contact the Cranston Department of Public Works for the current license application.
  • Hold Rhode Island Contractors' Registration and Licensing Board registration, which the City requires for sidewalk work under Section 12.08.080.
  • Obtain a $3,000 surety bond naming the City of Cranston as obligee.
  • File the executed bond with the license application.
  • For each job, obtain the Director of Public Works' written consent or right-of-way permit and pay any opening fee under Section 12.04.100.
  • Perform all work to the Department of Public Works specifications.

Detailed Information About the Rhode Island License to Install Various Public Improvements ($3,000) Bond:

What the license and bond cover

Work in Cranston's streets and sidewalks is controlled by the Director of Public Works under Title 12 of the Cranston Code, Streets, Sidewalks and Public Places. Section 12.08.040 provides that no curbing in the city shall be installed by any contractor or individual without first filing an application with the Director of Public Works and conforming to city ordinance. Section 12.04.100 prohibits any opening or excavation in a public highway, street, roadway or sidewalk, or laying pipe, drain, wire, conduit or cable there, without the prior written consent of the Director or a designee. The $3,000 bond backs the contractor's license to do this kind of installation work in the public way.

What the bond guarantees

The City of Cranston is the obligee. The bond guarantees that the licensed contractor will perform public improvement work in compliance with the City Code and the Department of Public Works' published Specifications for Highways Covering Residential and Industrial Developments, and will make the City whole if defective or noncompliant work has to be corrected. The amount is a flat $3,000 per license, not a figure calculated per job.

Fees and rules that come with the work

The bond does not replace job permits or fees. Under Section 12.04.100, non-utility applicants pay $450 for a water service connection, a sewer lateral installation or a storm drain installation. Utility company permits are issued only to the owner of the line or conduit and carry a $125 administrative and engineering inspection fee per opening, with work done to the City's Specifications for Utility Company Repairs to Streets. Section 12.04.110 exempts only the City and the Cranston School Committee from these fees. For sidewalk replacement under the City's cost share program in Section 12.08.080, the property owner must hire a contractor licensed by the Rhode Island Contractors' Registration and Licensing Board, and that contractor must obtain a right-of-way permit from the Department of Public Works.

Confirm the current license application and bond form with the Cranston Department of Public Works at City Hall, 869 Park Avenue, before the bond is issued.

Eligibility and Requirements for a Rhode Island License to Install Various Public Improvements ($3,000) Bond:

  • Bond amount of $3,000.
  • City of Cranston named as obligee.
  • Principal name matching the license application exactly.
  • Compliance with Title 12 of the Cranston Code and DPW specifications.
  • Underwriting based mainly on the owner's personal credit at this bond size.

Rhode Island License to Install Various Public Improvements ($3,000) Bond FAQs:

How much is the Cranston public improvements license bond?

$3,000, payable to the City of Cranston. It is a flat license bond, not an amount recalculated for each job.

Does the bond replace the right-of-way or excavation permit?

No. Each opening or excavation in a Cranston street or sidewalk still needs the Director of Public Works' written consent under Section 12.04.100, and curbing needs an application under Section 12.08.040. Opening fees, such as $450 for a non-utility sewer lateral, are paid separately.

Who is exempt from the opening fees?

Section 12.04.110 exempts only the City and the Cranston School Committee from the fees in Section 12.04.100. Private contractors pay them.

How is the premium set?

For a $3,000 license bond the surety looks mainly at the owner's personal credit and the company's claims history, and quotes a flat premium for the bond term.

Official and Additional Resources for the Rhode Island License to Install Various Public Improvements ($3,000) Bond:

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