Surety Bond Encyclopedia

Excavation Right of Way Permit ($10,000) Bond - City of Springville, UT in Utah

Brief Summary

Springville starts every right-of-way contractor at a $10,000 bond, but the number climbs as you pull more permits and can jump to 125% of the job on bigger work. Knowing your tier before you apply means the bond fits the first time and the permit is not held up at the counter.

Springville City requires a bond of at least $10,000 before it issues a Right-of-Way Encroachment Permit for excavation in city streets, under City Code Sec. 10-8-140. The Public Works Standard Specifications raise the minimum to $15,000, $20,000 or $25,000 for contractors with more permits in the past three years, and the City Engineer can require 125% of the estimated work. A separate $500 cash bond is also due with each permit.

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How to Apply for a Excavation Right of Way Permit ($10,000) Bond:

Count your Springville permits over the past 3 years to find your bond tier: $10,000, $15,000, $20,000 or $25,000.
Ask the City Engineer whether your project's scope will trigger a bond of 125% of the estimated work.
Hold a current Utah contractor's license valid for excavation.
Obtain general liability insurance of at least $2,000,000 per occurrence and $4,000,000 aggregate naming Springville City as additional insured.
Complete the bond application and review the quoted premium, requesting a term that runs at least two years past completion.
Pay the premium and receive the executed bond on the form the City provides.
Submit the bond, the $500 cash bond, insurance, license, traffic control plan and fees with the Right-of-Way Encroachment Permit Application.

Detailed Information About the Utah Excavation Right of Way Permit ($10,000) Bond:

$10,000 is where the bond starts

Springville City Code Section 10-8-140 requires every applicant, before a permit is issued, to provide acceptable security of at least $10,000. The City Engineer may raise or lower that amount based on the project. The city's Public Works Standard Specifications, Section 1.2.9, set the minimum by how many permits you have pulled in the past three years:

1 to 10 permits: $10,000 11 to 20 permits: $15,000 21 to 50 permits: $20,000 51 or more permits: $25,000

When the City Engineer finds the scope of the work exceeds the minimum, the total bond equals 125% of the estimated scope. The Public Works permit page describes the bond as $10,000 or greater depending on the valuation of the project.

How long it has to stay in force

The sources do not match, so plan for the longest. Section 10-8-140 requires the contractor to guarantee materials and workmanship for two years from completion. The Standard Specifications say the bond stays in effect one year from completion, and the 07/01/26 permit application says one year, or one year after the work is completed, whichever is greater. Buying a bond that runs two years past completion covers all three.

What else the permit needs

The bond is separate from a $500 cash bond held for the duration of the work and released after final approval. You also need a current Utah contractor's license valid for excavation, general liability insurance of at least $2,000,000 per occurrence and $4,000,000 aggregate with the City as additional insured, and a traffic control plan. The 07/01/26 application lists a $420 fee plus $71 per day with a three-day minimum of $213, and street cut fees are added based on the road.

Who is exempt

Public utilities franchised by the City do not have to file the bond if their franchise documents expressly waive it. Section 10-8-140 also lets the City accept a cash bond or letter of credit instead of a surety bond, as the City determines, and the City Attorney approves the bond form.

Eligibility and Requirements for a Utah Excavation Right of Way Permit ($10,000) Bond:

Minimum bond of $10,000 under Springville City Code Sec. 10-8-140, rising by tier under Standard Specifications Sec. 1.2.9.
Springville City as obligee, on a form approved by the City Attorney.
Two-year warranty on materials and workmanship from completion under the City Code.
Separate $500 cash bond held until final approval.
General liability insurance of $2,000,000 per occurrence and $4,000,000 aggregate.

Utah Excavation Right of Way Permit ($10,000) Bond FAQs:

Is the bond always $10,000?

No. $10,000 is the minimum. The Standard Specifications raise it to $15,000 at 11 to 20 permits in the past three years, $20,000 at 21 to 50, and $25,000 at 51 or more. On larger jobs the City Engineer can require 125% of the estimated work.

Does the $500 cash bond replace the surety bond?

No. The $500 cash bond is a separate deposit held until final approval. You need both.

How long does the bond need to last?

The City Code requires a two-year warranty from completion. The permit form and Standard Specifications say one year after completion. A bond running two years past completion satisfies all of them.

Are utility companies exempt?

Public utilities franchised by Springville City are exempt only if their franchise documents expressly waive the bond.

Can I post cash or a letter of credit instead?

Section 10-8-140 allows a corporate surety bond, cash bond or letter of credit, as determined by the City. A surety bond keeps the cash and your credit line free.

What will the bond cost?

The surety sets the premium based on the bond amount, the term and your company's credit and claims history. The City does not set it. Apply to see your actual quote.