A general contractor engaged in subdivision work or projects that touch on public streets may need to purchase and file a lateral support bond with a state of municipality. Excavation work conducted on or near a public right of way or on private property adjoining the same where lateral support of a street or road might be imperiled may be required to provide this surety bond. Lateral support bonds are also known as "excavation" surety bonds, and in some jurisdictions "shoring" bonds. Lateral support bonds are also often required for sewer and sanitary work and in conjuction with other payment and performance bond instruments.
In determining the bond amount, a municipality's engineering or building department will generally follow a formula. For example, the City of Los Angeles fixes lateral support bond penalties through the City's local district offices. The bond estimate includes the value of the improvement, a I5% permit contingency factor (PCF) and a 50% cost increase factor (CIF). The obligation guarantees that the contractor will exersise due diligence in efforts to preserve a adjoining land, right of ways, and the buildings and structures on it. The shoring bond may also guarantee that the excavating contractor removes any permitted structure or obstruction that becomes insecure or unsafe, or is not constructed or maintained in accordance with the terms of an excavatoin permit.
City and County of San Francisco - Street Excavation Bond
Contract surety bond leader, Surety One, Inc. is an experienced underwriter of shoring and lateral support bonds. We provided unmatched support of your surety bond need, based on our knowledge of the construction industry and our focus on our personal relationship with general contractors. We facilitate expeditious review and response to your 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 about a lateral support bond.
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