Grading Bond (Grading Permit Bond)

Bond Penalty: Varies pursuant to municipal code

A grading permit bond is required by many municipalities in the State of California with the exception of Tennessee which requires a state bond from (Tennessee highway grading bond). This surety indemnifies the obligee (municipality) should an operator walk off of a work site leaving the permitted job incomplete or if the operator's work is faulty. Grading permits are issued by public works departments, offices of building permit officials and city/county code enforcement offices. A grading bond generally guarantees the following:

  • Compliance with municipal building, earth movement and erosion codes.
  • Timeliness of completion of the permitted work.
  • Reimbursement of the municipality for any work that may be necessary to complete, correct or otherwise undertake in the name of public safety.

A grading bond is essentially a performance bond. The surety many not cancel the obligation, bond amounts can be large and performing the work can require special knowledge and experience (capacity), therefore most of these surety bond requests require some level of underwriting. While small bond requests may be treated as local permit bonds, larger requests require review of a contractor's or developer's project history, insurance coverages and financial statements. With the exception of the Anne Arundel County (Maryland) grading bond and the Tennessee highway grading bond, the following municipalities require surety guarantees:

  • Los Angeles County Grading Bond
  • Orange County Grading Bond
  • Riverside County Grading Bond
  • City of Beverly Hills Grading Bond
  • City of Carlsbad Grading Bond
  • City of Diamond Bar Grading Bond
  • City of Escondido Grading Bond
  • City of Irvine Grading Bond
  • City of Long Beach Grading Bond
  • City of Los Angeles Grading Bond
  • City of Mission Viejo Grading Bond
  • City of Murrieta Grading Bond
  • City of National City Grading Bond
  • City of Oakland Grading Bond
  • City of San Diego Grading Bond
  • City of San Marcos Grading Bond
  • City of Solana Beach Grading Bond
  • City of South San Francisco Grading Bond

NOTE: General contractors in the State of California must be bonded. Filing a grading bond with a local permitting authority does not exempt a general contractor from state licensing. Do you need a CA CLB license bond? Click here.

Performance bond leader, Surety One, Inc. is an experienced underwriter of contract surety bonds, erosion bonds, subdivision bonds and permit bonds. We provide unmatched support of your surety needs based on our knowledge about the industry and our focus on our personal relationship with contractors. We facilitate expeditious review and response to your bid bond request in a polite, clear way. Call us at (800) 373-2804, email Underwriting@SuretyOne.com or click here to chat with an underwriter real-time.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

What We Need From You

Additional Attachments

  • Certificate of contractor's liability insurance (if bond over $50,000)