Top 5 Things to Know About the City of Los Angeles Grading Permit Bond

Top 5 Things to Know About the City of Los Angeles Grading Permit Bond

By | 2022-12-01T17:05:44-08:00 November 30th, 2022|License & Permit Bonds|Comments Off on Top 5 Things to Know About the City of Los Angeles Grading Permit Bond

Top 5 Things to Know About the City of Los Angeles Grading Permit Bond

If you’re a property owner planning to complete grading work in the city of Los Angeles, California, you likely need to obtain a grading permit bond. This bond is required by the city to ensure that the grading work is completed according to all approved building plans and as outlined by the terms of the grading permit. It also protects the city from any financial losses that may occur as a result of incomplete or faulty construction. Here are the top 5 things you need to know about grading permit bonds!

Top things to know about the Los Angeles Grading Bond

#1: What is a City of Los Angeles Grading Permit Bond

The Los Angeles Grading Permit Bond is a surety bond required by the city of Los Angeles for property owners applying for a permit for the excavation or fill of 250 cubic yards or more when conducted in a designated hillside area (L.A.M.C. § 91.7006.5.1). This bond protects the city from financial damage or losses that may occur as a result of incomplete or faulty construction.

A grading permit bond is a type of surety bond. Like all surety bonds, it is a three-party agreement between the principal (the person or business required to get the bond, aka the property owner), the obligee (the entity that requires the bond, aka the city of Los Angeles), and the surety company that issues the bond.

The purpose of the bond is to protect the public from financial damage or losses they could incur as a result of the principal’s failure to complete the work according to the terms of their grading permit. For instance, if the property owner does not adhere to the approved building plans, the surety will pay out any valid claims made against the principal’s bond up to the bond amount. The principal is financially responsible for reimbursing the surety for any claims, plus additional fees and expenses incurred.

The city of Los Angeles requires a grading bond for property owners to obtain a permit to begin construction work that involves excavation and other grading work.

What is an LA Grading Bond

#2: Who needs an LA Grading Bond?

According to city regulations, any person or company who plans to do grading, excavating, or fill work in the city of Los Angeles must obtain a grading permit bond. More specifically, LA Municipal code states that “a grading bond is required for all grading work of 250 cubic yards or more when conducted in a designated hillside area” (§ 91.7006.5.1). Grading work includes the cutting, filling, or moving of any earth materials that will be imported or exported to or from any grading site.

Once you have your bond, you must apply for a Building Permit or Grading & Certificate of Occupancy from the LA Department of Building and Safety. You can find the application online and submit it to the department for approval.

#3: What does this bond do?

This grading permit bond protects the city of LA and the public from losses if the principal (the person required to have a grading permit and bond) fails to complete the work according to the terms of their permit and the regulations established by the city and state. If the principal doesn’t adhere to the terms of their permit, any injured party can file a claim against the bond to recoup losses.

For instance, if the property owner operates fraudulently and causes injury, the injured party can file a claim against the property owner’s bond. If the claim is valid, the surety will compensate the injured party up to the bond amount. The principal is financially responsible for reimbursing the surety for any claims, plus additional fees and expenses incurred. The bond essentially transfers the financial liability from the obligee (the city of Los Angeles) to the surety company, and, ultimately, the principal on the bond (the property owner).

If you are planning to do grading, excavating, or fill work in the city of Los Angeles, you will likely need to obtain a permit and post a city of Los Angeles Grading Permit Bond.

Expansion of Los Angeles, Land Grading

#4: How much does an LA Grading Bond cost?

In most cases, the cost of a grading bond will vary depending on the bond amount, and the bond amount required typically depends on the size of the project. LA Municipal Code states that “the bond amount is based on the number of cubic yards of material in either excavation or fill, whichever is the greater amount, plus the cost of all drainage and other protective devices, such as retaining walls” (§ 91.7006.5.7).

For this reason, the cost of an LA Grading Bond depends primarily upon two things: the bond amount required and the credit score of the applicant. Individuals with optimal financials may see quotes for their premium starting as low as 1-2% of the bond amount.

#5: How do I get my Los Angeles Grading Permit Bond?

The best way to get your Los Angeles Grading Bond is by applying for your free quote at South Coast Surety. We work with a variety of surety markets to find the lowest quote available to you.

Getting started is quick and easy! Simply contact us today by calling 949-361-1692 or emailing us at apps@southcoastsurety.com to begin your application.

Bulldozer Grading Land

Key Takeaways

  • The LA Grading Permit Bond is a surety bond required by the city of Los Angeles for property owners applying for a permit for the excavation or fill of 250 cubic yards or more when conducted in a designated hillside area.
  • The cost of an LA Grading Bond depends on two things: the bond amount required and the credit of the applicant.
  • The bond amount you’ll need will depend on the number of cubic yards of material in either excavation or fill, whichever is greater, plus the cost of all drainage and other protective devices.
  • Apply for your bond by calling us at 949-361-1692 (or email us at apps@southcoastsurety.com) to apply for your free quote for the LA Grading Bond.

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