Grading Permit Bond Quotes for Contractors

Step 1 of 4

What type of Grading Project?

The scope of work determines the risk level.

Single Lot / Residential Driveways, landscaping, or single-home site prep.

Commercial Development Parking lots, shopping centers, or industrial pads.

Subdivision / Public Works Streets, sewers, and mass excavation for housing.

Avoid Stop Work Orders

Most cities will shut down your site immediately if this bond expires or isn't filed before breaking ground. Get your PDF copy instantly.

Why does the City Engineer require this?

Moving earth changes drainage patterns. The city requires a "Grading Permit Bond" (sometimes called a Land Improvement Bond) to guarantee:

Erosion Control: Ensuring mud doesn't slide onto public roads or neighbors' property.
Completion: If you abandon the project, the bond pays to restore the land to a safe condition.

Step 2 of 4

Developer / Owner Credit

Soft pull only. We need to assess the financial stability of the project owner.

Excellent (700+)

Preferred rates (typically 1-2%). Instant approval for bonds under $50k.

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Fair (600 - 699)

Standard rates. Collateral is usually NOT required for grading bonds.

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Under 600 / Issues

We have markets for developers with challenged credit.

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Step 3 of 4

Required Bond Amount?

This is set by the City Engineer based on cubic yards of dirt.

Under
$25k Small Site

$25k -
$100k Standard

$100k + Subdivision

Note: You do not pay the full amount. You pay a premium (typically 1% - 3%) to the surety company. The bond is released once you get your final inspection approval.

Step 4 of 4

Need other excavation coverages?

Heavy equipment requires specialized insurance.

General Liability (GL) Covers damage to third-party property (e.g., hitting a gas line).

Inland Marine (Equipment) Protects your bulldozers, excavators, and bobcats from theft/damage.

Workers Comp Mandatory for excavation crews.

What happens if I don't finish grading?

If a developer goes bankrupt or abandons a site halfway through digging, it creates a public hazard (mudslides, open pits, flooding).

The bond funds restoration:

Stabilization: The city uses the bond money to hire a contractor to stabilize the soil.
Re-seeding: Planting grass to prevent erosion.
Infrastructure: Fixing any damaged sidewalks or curbs.

Permit Bond

City/County Compliant

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How much does a Grading Bond cost?

Pricing depends on the bond amount required by the city and the financial strength of the developer.

Preferred Developer

1% - 2%

$150 Min

Of Bond Amount
For established developers and homeowners with strong credit.

Most Common

Standard Rate

2% - 4%

$250 Min

Of Bond Amount
Typical rate for LLCs or new development projects.

High Risk

5% +

Collateral?

Maybe Required
If financials are weak, we may need collateral to issue the bond.

Frequently Asked Questions

How do I release the bond?

You must complete the grading work and call for a final inspection from the City Engineer. Once they sign off (or issue a Certificate of Occupancy), they will send a release letter to the surety company, canceling the bond.

Is this the same as a Subdivision Bond?

They are similar but distinct. A Grading Bond covers the dirt work. A Subdivision Bond (or Site Improvement Bond) is broader and covers the installation of public improvements like paving, curbs, gutters, and street lights.

How is the bond amount calculated?

The City Engineer usually has a formula. For example: $10,000 for the first 1,000 cubic yards, plus $1.00 for every additional cubic yard. You must get this total from the city before applying for the bond.

Can I get a bond for a swimming pool dig?

Yes. Many cities require a small grading bond (e.g., $2,000 or $5,000) for swimming pool excavation to ensure the sidewalk isn't damaged and the dirt is hauled away properly.