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When Is A Los Angeles City Grading Permit Bond Required?

A Los Angeles City Grading Permit Bond (or cash bond) may be required when applying for a permit where the amount of earth being excavated during construction exceeds an amount set by the city of Los Angeles.  Currently the threshold is 250 cubic yards or more being graded within a designated hillside.

The purpose of the grading permit surety bond is to ensure the contractor remains in compliance with all applicable laws, building codes and conditions stipulated in the permit.  Should a contractor fail in these obligations resulting in a bond payout, the contractor is responsible for repaying the surety the amount of the claim plus expenses.

How Much Does This Bond Cost?

Grading permit surety bond premiums will vary based on several factors including the applicants credit, financials and the amount of the bond being requested among other factors.  Underwriters are looking for qualified applicants that are experienced and have the financial ability to repay the bond should a valid claim occur.   Rates are typically in the range of 2-5% of the bond amount with collateral required in some instances.

What Is the Process For Obtaining a Los Angeles City Grading Permit Bond?

To obtain a quote, please call us at 1-800-682-1552 or begin the online quote process by clicking here.    Below is a partial list of information needed to complete the quote:

  1. A copy of the permit application
  2. A copy of the bond form- (Link to Los Angeles City Grading Bond Form)
  3. A copy of the bond request form from the City of Los Angeles
  4. A completed bond application provided by our agency

**Also of note, the grading bond must be taken in the name of the owner and signed by the owner.  For complete grading bond instructions for the City of Los Angeles, please click here.

Turn around time is typically within 24 hours once an applicant has completed the application and provided all supporting documentation to our underwriters.