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City of Lake Forest, CA – Grading Permit Bond
Projects that require the excavation, export, or import of soil as part of a grading or building project typically require a City of Lake Forest, CA – Grading Permit Bond to provide security to the city or county that the work will be performed and in accordance with local codes, ordinances, and grading and building permit plans. This is done to ensure that the work will be carried out in accordance with the approved grading and building permit plans.
These bonds demand a release from the entity that is requesting them, and as a result, the bond premium must be paid on an annual basis until a formal release can be submitted.
Obtaining a grading permit is mandatory for any contractor planning to carry out grading work inside the city limits of Lake Forest. This is the requirement. This bond’s primary objective is to verify that the applicant for the permit or contract will comply with the following requirements:
- Chapter 8.30 of the Lake Forest Municipal Code contains these provisions.
- The Orange County Grading and Excavation Code is what the City of Lake Forest has decided to go with.
- Other laws and ordinances that may be relevant.
Before a grading permit may be issued, the City of Lake Forest requires the contractor to provide a design, specifications, and any other relevant data to the position of Director of Public Works/City Engineer. This is one of the requirements that must be met.
How It Works
A bond is a legal arrangement that binds three parties to a contract. The permission applicant will be the first party, which is going to be the Principal. The person who is applying for the permission will be the one who is responsible for acquiring this bond and for meeting the requirements that come with the bond.
The other party is referred to as the Obligee. The city of Lake Forest is the one that is obligated to pay. The owner of the project, who will also be the recipient of this bond, is referred to as the obligee.
It is the responsibility of the Surety, or the third party, to guarantee that the obligations of the Principal are met. If the Principal does not fulfill his or her contractual responsibilities, the Surety will also guarantee that the Obligee will be paid even if the Principal is in default.
For instance, in the event that the Principal does not complete the grading job by the specified deadline, the Obligee will be able to submit a claim since this behavior violates the terms and circumstances of the bond. If the Principal was unable to complete the task by the due date, the Surety will conduct an investigation. If the claim is found to be legitimate, the Surety is obligated to make payment to the Obligee.
Making a Claim
In the event that the City of Lake Forest submits a claim against the Grading Permit Bond, the surety firm will evaluate the validity of the claim and act in accordance with the results of their findings. Claims against surety companies are not processed at the CCIS office. Nevertheless, the contractor will be given information on how to contact claims administrators in order to move the claims process forward.
In the event that it is determined that the claim was founded in fact, the surety firm will pay up the maximum amount of the bond to the City of Lake Forest.
The City of Lake Forest, CA – Grading Permit Bond protects the City of Lake Forest, its workers, and its suppliers against the conduct of a contractor. Insurance plans protect contractors against unexpected circumstances, but this bond protects the City of Lake Forest, its laborers, and its suppliers.
Since contractors are accountable for their own acts, the surety firm is entitled to reimbursement for any claims that have been paid out. If a contractor does not follow these steps, it will be far more difficult for that contractor to get a surety bond for any future work.
The City Engineer is responsible for determining the bond amount in accordance with the provisions of Section 8.30.090 of the Municipal Code. This sum must be sufficient to remedy or remove dangerous circumstances, as well as conditions that constitute a threat to environmental resources, including but not limited to a threat to water quality.
As a prerequisite for occupation and the activation of utilities, the City Engineer may stipulate that additional security in an amount that he or she chooses be provided to guarantee the completion of final grading in accordance with the grading permit.
The cost of the bond for the contractor ranges from 1% to 7.5% of the total project cost on average, depending on the contractor’s personal credit score.