City of Los Angeles – Sewer / Storm Drain Connection Bond
Are you a Los Angeles based contractor that works on sewer or storm drains connecting to city infrastructure? If so, be sure to complete the Los Angeles Bonded Sewer Contractor program prior to performing any work to avoid violating city law. While some contractors may be unfamiliar with the program, we’ve provided a quick rundown of the process below, as well as the bonding requirements.
Los Angeles contractors that engage in making sewer or storm drain connections between private property and the public right-of-way must be approved under the city of Los Angeles Bonded Sewer Contractors Program per Los Angeles Municipal Code Section 64.15.1. The processing time takes a minimum of two weeks and contractors must obtain general liability insurance as well as a Sewer/Storm Drain Connection Bond (or cash in lieu of bond), as well as several other requirements. The bonded sewer program is valid for one year at a time, so contractors must renew their application each year along with supporting requirements such as applicable bonding and liability insurance.
What Is The Purpose of The Sewer/Storm Drain Bond?
The City of Los Angeles requires the Sewer/Storm Drain Bond to protect itself from financial loss in the event a contractor fails to perform on their contractual obligations, causes damage or violates any applicable building codes, as well as state or local laws. With this in mind, the bonding agreement acts as a mechanism to protect the City, while holding the contractor accountable for his actions at the same time.
How Much Does The Los Angeles Sewer / Storm Drain Connection Bond Cost?
As of July 1st 2012, the amount required for the bond (or cash deposit in lieu of bond) is $25,000 and increases annually by the amount of the increase in the consumer price index for the previous year, rounded to the nearest $100. Accordingly, for the year 2017, the bond amount is $27,100 and the premium contractors will pay varies based on the financial strength and credit history of the applicant. Please note, this bond is not to be confused with a contractors license bond. For a bond premium estimate, please complete the quote form on the right of this page or give us a call. Turnaround time for quotes is same day.
How Does The Bonding Process Work For These Bonds?
After a contractor completes the Los Angeles Sewer Bond Application provided by our agency and it has been approved by the Surety and purchased by the contractor, the surety issuing the bond will send the contractor an official stamped, notarized copy that must be notarized by the contractor and submitted electronically to the Office of the City Administrator Officer, Risk Management, [email protected] Submissions submitted other than by email will be delayed according to the office. Also, instructions for executing bond documents can be found here for the City of Los Angeles. After a bond has been submitted, the status can be checked using the city’s online bond compliance system, http://track4la.lacity.org. Remember, contractors must submit renewal applications each year along with supporting documentation to remain in the program.
HAVE BONDING QUESTIONS?
Call us today at 1-800-682-1552 to speak with a licensed contractors bond specialist.