Paving, Excavation and Monitoring Well ($50,000.00) Bond - City of El Paso, TX in Texas

Brief Summary

The $50,000 bond is the amount El Paso can require when right of way work is valued above $10,000, and one current bond can stand behind every excavation permit you hold. One bond, filed once with your contractor registration, keeps pavement cut, excavation and monitoring well permits moving without a new bond for each job.

The City of El Paso will not issue a permit to cut or excavate in a street, alley, sidewalk, parkway or driveway in the city right of way until the applicant files a bond. El Paso City Code 13.08.040 sets a $10,000 minimum and lets the permit official require more when the work exceeds $10,000. The city's 2023 Contractor Registration Requirements state that the Building Official may require a $50,000 bond when the work exceeds $10,000 in valuation. The bond must run long enough to cover the one-year warranty period, and one current bond can cover all of a permittee's permits.

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How to Apply for a Paving, Excavation and Monitoring Well ($50,000.00) Bond:

• Confirm with the permit official whether your work calls for the $50,000 bond. It can be required when the work exceeds $10,000 in valuation.
• Use the exact business name registered with the county or in the articles of incorporation, punctuation and abbreviations included.
• Name the City of El Paso as obligee.
• Request a bond term that covers the one-year warranty period.
• File the bond with the contractor registration application and pay the registration fee, which is $102 a year for general contractors.
• Provide the list of people authorized to pull permits under the registration.

Detailed Information About the Texas Paving, Excavation and Monitoring Well ($50,000.00) Bond:

Which amount applies to you

El Paso uses two bond amounts for this work:

• $10,000. City Code 13.08.040 says no permit will be issued until the applicant files a bond in the minimum amount of ten thousand dollars, and the city's contractor registration application states that pavement cut contractors submit a $10,000 bond.
• $50,000. The permit official may require a bond above $10,000 when the permit application is for work above $10,000. The city's Contractor Registration Requirements (Rev. 6/2023) put it this way: the Building Official has the authority to require a bond in the amount of $50,000 if the subject work exceeds $10,000 in valuation.

The same 2023 sheet lists a $50,000 or $10,000 Blanket Building Construction Bond for pavement cuts or excavation in the public right of way, along with irrigation, site lighting, fences and other limited permits. This page covers the $50,000 bond.

What the bond guarantees

Under 13.08.040, the bond guarantees that the principal and its agents, employees and subcontractors will comply with Chapter 13.08, that the principal will pay damages the city sustains from a failure to comply, and that the principal will indemnify the city against claims arising from that failure. Bonds must be issued for a duration sufficient to cover the one-year warranty period.

Monitoring wells

Drilling a monitoring well in the public right of way or on city property takes a separate monitoring well permit under 13.08.110. The application needs a site map, a narrative of why the well is needed and the drilling schedule, and any TCEQ demand letter, with copies to El Paso Water Utilities. The applicant must meet the chapter's insurance and bond requirements. A monitoring well permit expires one year from the date it is issued.

Who is exempt

13.08.040 exempts public utility companies operating under a state or city franchise when the permitted work is performed solely by the utility's own employees, and government agencies when all the work is performed by their own employees. An applicant that already posted a bond with the city under another chapter of the City Code, in the amount the permit official requires and meeting all of Chapter 13.08's requirements, does not need an additional bond but must provide a copy.

Registration, insurance and fees

Contractors register with the city's Planning and Inspections Department, and the registration application calls for the bond. The 2023 requirements list a $102 annual registration fee for general contractors and general liability insurance of $250,000 bodily injury per person, $500,000 aggregate and $100,000 property damage. Business names on the bond and documents must match the name registered with the county or the articles of incorporation, including punctuation and abbreviations. Confirm the amount the permit official will require for your work before the bond is issued.

Eligibility and Requirements for a Texas Paving, Excavation and Monitoring Well ($50,000.00) Bond:

• Bond conditioned on compliance with El Paso City Code Chapter 13.08 and payment of the city's resulting damages.
• General liability insurance of $250,000 bodily injury per person, $500,000 aggregate and $100,000 property damage per occurrence.
• City of El Paso named as additional insured, with 30 days notice of cancellation.
• Assumed name certificate or corporate documents, and state licensing where applicable.
• A separate monitoring well permit for each property where wells are drilled in the right of way or on city property.
• Underwriting review of the contractor. Credit, experience and the bond amount shape the premium.

Texas Paving, Excavation and Monitoring Well ($50,000.00) Bond FAQs:

Official and Additional Resources for the Texas Paving, Excavation and Monitoring Well ($50,000.00) Bond: