The three parties of this bond include the obligee, the principal, and the surety company. The obligee is the municipality that is requiring the principal to be bonded. The property owner (principal) must provide a Grading Permit Surety Bond in order to legally get a grading and/or building permit. The surety company is the party that underwrites and ensures the bond.

grading permit surety bond

What Is the Grading Permit Surety Bond For and What Does It Do?

This bond guarantees that the grading is being worked on according to the approved building plans and the terms of the permit.

A surety bond is an agreement between the three parties that the principal will act accordingly to what is stated in the bond. If the property owner acts fraudulently or fails to abide by the bond requirements, then the surety company will cover the claim filed against the principal.

The municipality requires the property owner to be bonded. The bonding requirements state that the principal will abide by the local government’s grading laws and regulations. It is a good idea for the principal to be informed on all requirements before applying for a bond.

Bond Amount and Bond Cost

The Grading Permit Surety Bond amount is the amount of coverage the surety company will pay out to the party harmed if a claim is filed against the bond. Bond amount is set by the municipality, not the surety company. It is important for the principal to understand that the municipality is the only party that can release the bond once the grading is completed and approved. That means the bonds are billed annually until the municipality releases the bond.

The cost for the bond is also referred to as the bond premium. The bond premium is the only cost that the surety company sets. All other fees that are related to the bond are set by the obligee. The bond premium is only a small percentage of the bond amount.

Additional Documents May Be Required

For some projects, if the size of the grading bond exceeds $100,000, then additional documents may be required. The obligee will ask for this additional information if necessary.

  1. Developer’s questionnaire
  2. Business financial statements
  3. Personal financial statements
  4. Copy of trust (if applicable)
  5. Bank reference letter
  6. Articles of incorporation


How to Get Your Grading Permit Surety Bond

  1. Complete an online application. It’s free and no-obligation.
  2. One of our surety experts will contact you with a firm quote and an agreement to sign.
  3. Provide payment and your signed agreement, and then you will receive your Surety Bond!

If you have any questions, please call us at 877-654-2327.

How to Get Bonded

1. Apply Online
Using our Free & Secure Application
2. Get Your Free Quote
Applications are No-Obligation
3. Get Your Bond
Most Bonds are Approved in 1-2 Business Days

Surety Bond Experts

Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.