Grading Permit bonds are often required by municipalities when either a developer or property owner applies for a grading permit. The grading bond amount is based off off an engineer’s cost estimate to compete the grading work. While these are often tied to subdivisions, many homeowners doing a permitted driveway or expansion are sometimes asked to provide a grading bond. While subdivision related bonds are difficult to qualify, most surety companies view grading bonds much less stringently.
For Bonds Under $50k Be Prepared to Provide:
1) Grading Bond Application
2) Engineer’s Estimate (the municipalities needed this to calculate the bond amount)
3) bond forms
If the home owner has good credit it’s good to go.
For Bonds Under $100k Be Prepared to Provide all the Above Plus:
1) Personal Financial Statement
2) Business Financial Statement if you are a developer
3) Bank statements to verify cash (or loan agreement if borrowing money to finish work)
4) Copy of the contract with contractor performing the work
If the home owner or developer has good credit it should be good to go.
For Bonds Over $100k be Prepared to Provide all the Above Plus:
1) Long From Questionnaire
2) Resumes to highlight developing experience
3) Related entity documentation and financials
For those small grading bonds under $100k the process is fairly straightforward and easy. The higher the bond amount the more information you can expect to be asked from the surety underwriter.
At Surety1 we are experts in all types of bonds. While subdivision related bonds can be frustrating we have the expertise and resources to make it as painless as possible. Call us now for any questions at 877-654-2327.