Street Obstruction Bond (City of New York)

Property improvements and construction works are two of the permit activities that require New York City street obstruction bonds. An application for a permit must provide this surety bond based on the number of sites that will create an obstruction. The instrument guarantees that the permit holder will comply with the conditions of his or her permit, including all applicable laws, rules, and city regulations and of the Commissioner of the Department of Transportation. The surety bond form specifically guarantees the permit holder's right to "work on roadways, to drive across curbs and sidewalks with vehicles or equipment or to hang banners and erect banner poles or any type of temporary construction, to excavate plots or open areaways and sidewalks, to take up the sidewalks or curbs for that purpose, to erect and maintain any and all signage, erect sheds on sidewalks and on roadways, and bridge the sidewalks where the same are crossed by vehicles or equipment." The purpose is to ensure safe and convenient passage for pedestrians while facilitating the contractor's ability to encroach on public areas. The bond penalties are set by location count as follows:

• $10,000 one location
• $50,000 two to fifty locations
• $100,000 fifty one to one hundred locations
• $250,000 over one hundred locations

By executing the bond the surety agrees to:

1. pay the City the costs the City incurred to complete the work that must be performed under the permit ("Permitted Work") if the permit holder fails to perform said Permitted Work, including repair and maintenance of the same
2. fully complete the Permitted Work, and/or
3. to pay any fines, fees, or penalties imposed as a result of the his or her failure to comply with and conform to the conditions of the permit

If the City calls a breach on the bond then the surety must begin site work at the location(s) defined in the permit within twenty-five (25) business days after written notice from the City, and to complete all Work within such time as the City may reasonably fix. The New York City street obstruction bond is valid for one year however it can be extended by surety's issuance of a continuation certificate. The obligation is not cumulative, being limited to one bond penalty regardless of the number of terms that the bond is in effect. The surety may cancel the bond on written notice delivered to the New York City Commission of Transportation. Application forms and surety bonds should be delivered to:

New York City Office of Permit Management
Street Obstruction Surety Bond & Application
55 Water Street, Concourse Level
New York, NY 10041

New York surety bond leader, Surety One, Inc. is a specialist in providing for the bonding needs of the construction, electrical, HVAC and commercial contracting industries. We offer this class of surety instrument to all applicants in every state where contractors must provide verification of bondability.

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

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