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Permit Bonds for Construction, Encroachment & Street Use

Get permit bonds required by cities and counties for construction projects, encroachment permits, street use permits, and work affecting public property. Fast approval for most bonds.

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  • Fast approval for bonds up to $50,000
  • Accepted by all municipalities nationwide
  • Same-day electronic bond delivery
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What is a Permit Bond?

A permit bond is a type of surety bond required by cities, counties, and municipalities as a condition for issuing permits for construction, excavation, encroachment, or other work that may affect public property or infrastructure.

Permit bonds serve as a financial guarantee that the permit holder will comply with all applicable building codes, ordinances, and regulations. They also ensure that any damage to public property (streets, sidewalks, utilities, rights-of-way) will be repaired or compensated.

Key Protection: Permit bonds protect municipalities and taxpayers from the costs of repairing public property or completing work if a contractor fails to meet their obligations.

Types of Permit Bonds

Different types of permit bonds are required depending on the nature of the work and local requirements.

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Construction Permit Bonds
Required by municipalities before issuing building permits. Guarantees work meets code and protects against property damage.
Bond Amount:$5,000 - $100,000
Duration:1-3 Years
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Encroachment Permit Bonds
Required for work in public right-of-way areas. Covers utilities, fences, signs, or structures near public property.
Bond Amount:$5,000 - $50,000
Duration:1-5 Years
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Street Use Permit Bonds
Required for temporary street closures, construction zones, or events. Guarantees restoration of public roads.
Bond Amount:$10,000 - $100,000
Duration:Project Duration
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Sidewalk & Driveway Bonds
Required for new or modified sidewalk/driveway construction. Ensures work meets municipal specifications.
Bond Amount:$2,500 - $25,000
Duration:1-2 Years
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Excavation Permit Bonds
Required for utility trenching, foundation work, or underground construction. Protects against infrastructure damage.
Bond Amount:$5,000 - $50,000
Duration:Project Duration
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Right of Way Bonds
Required for work affecting public rights-of-way including roads, sidewalks, and utility easements.
Bond Amount:$10,000 - $100,000
Duration:1-3 Years

Who Needs Permit Bonds?

General contractors working on municipal projects
Utility companies installing or maintaining infrastructure
Developers building driveways, sidewalks, or curbs
Property owners adding structures near public property
Event organizers using public streets or spaces
Landscapers working near public right-of-way areas
Sign companies installing structures in public areas
Telecommunications companies installing equipment

How Permit Bonds Work

Understanding the three parties involved in every permit bond

1

Principal

The contractor, developer, or property owner who purchases the bond and is responsible for complying with permit requirements.

2

Obligee

The city, county, or municipality requiring the bond. They are protected if the principal fails to meet their obligations.

3

Surety

The insurance company backing the bond. They pay valid claims and then seek reimbursement from the principal.

Get Your Permit Bond in 4 Steps

1

Submit Application

Provide basic information about your permit requirements and business.

2

Get Approved

Many permit bonds are approved instantly. Larger bonds may require brief underwriting.

3

Pay & Download

Pay your premium and receive your bond certificate electronically, same day.

4

Submit to Municipality

File your bond with the city or county to receive your permit.

Frequently Asked Questions About Permit Bonds

What is a permit bond?

A permit bond is a type of surety bond required by cities, counties, and municipalities before issuing permits for construction, excavation, or work affecting public property. The bond guarantees that the permit holder will comply with all applicable codes, ordinances, and regulations, and will restore any public property to its original condition. If the permit holder fails to meet these obligations, the municipality can make a claim against the bond.

How much do permit bonds cost?

Permit bond costs typically range from 1-3% of the bond amount annually. For example, a $10,000 permit bond would cost approximately $100-$300. Many permit bonds qualify for instant approval with no credit check for amounts up to $50,000. Larger bonds or applicants with credit challenges may pay higher rates. The exact cost depends on bond amount, duration, and the specific municipality requirements.

How long does it take to get a permit bond?

Many permit bonds can be approved instantly with no credit check required for amounts up to $50,000. Standard applications are typically processed within 1-2 business days. Once approved, bonds can be issued immediately and delivered electronically. For urgent permits, same-day approval and delivery is often available.

What is the difference between a permit bond and a license bond?

Permit bonds are project-specific or time-limited bonds required to obtain a permit for specific work or activities, such as construction or street use. License bonds are ongoing requirements to maintain a professional license, such as a contractor license bond. Permit bonds protect municipalities and the public from specific project-related damages, while license bonds protect consumers from professional violations over time.

Do permit bonds expire?

Yes, permit bonds have specific terms that align with the permit duration. Many permit bonds are valid for 1-3 years or the duration of the project. Some municipalities require bonds to remain in effect until final inspection and approval. Renewal is required if the project extends beyond the initial bond term. The municipality will release the bond once all work is completed and approved.

What happens if a claim is made against my permit bond?

If you fail to complete work according to permit requirements or cause damage to public property, the municipality can file a claim against your permit bond. The surety company will investigate the claim and, if valid, pay the municipality up to the bond amount. You are then obligated to reimburse the surety company for any amounts paid, plus investigation costs and legal fees. Maintaining proper insurance alongside your permit bond is recommended.

Related Bond Types

Contractor License Bonds
Required for contractor licensing in most states
License Bonds
Professional and business license bonds
Performance Bonds
Guarantees project completion
Government Resources for Permit Bonds
Official sources for permit requirements
U.S. Treasury - Surety Bond Program

Treasury-certified surety companies

SBA Surety Bond Guarantee Program

Federal assistance for small contractors

Note: Permit bond requirements vary by municipality. Contact your local building department or public works department for specific requirements.

Written by BuySuretyBonds.com
Licensed surety bond agency operating nationwide with direct integrations to Treasury-certified surety carriers. Our platform enables instant approval for license and notary bonds, with 24-48 hour underwriting for commercial bonds. All content is researched from official state and federal sources (.gov) and reviewed by licensed insurance professionals.
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Need a Permit Bond for Your Project?

Get fast approval for construction, encroachment, street use, and other permit bonds. Same-day delivery available.

Fast
Approval
All Cities
Accepted
$50+
Starting Cost
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