What is a surety bond, and why do I need one for my Olympia, Washington Street Excavation and Obstruction Bond?
A surety bond is a three-way agreement between a Principal (the individual or company applying for a Street Excavation Permit), the Obligee (City of Olympia), and the surety company backing the bond. A surety bond is a guarantee that the Principal will adhere to all rules, laws, and regulations pertaining to their permitted work. In the event that the Principal does not follow the agreement, the obligee is free from any damages that may arise.
This surety bond ensures that the permitted Street Excavation and Obstruction Specialist will comply with all requirements, obligations, and regulations outlined by Olympia City Code, Section 12.20.060 once it is issued by the City of Olympia, Washington. In the event that there are any damages caused by the misconduct or negligence of the permittee, the public and the city are protected from any liabilities.
This bond is valued at $10,000/year, but the Principal must only pay a premium. The costs of a Street Excavation and Obstruction Bond are as follows:
- 1 year – $115
- 2 years – $201.25
- 3 years – $287.50
You must file this bond with the City of Olympia before you will be issued a permit for Street Excavation and Obstruction.
If there is a claim filed against this bond, the surety will pay the damaged party, at which point the Principal must fully repay the surety. In addition to any repayments, the surety may revoke the bond at any time. In the event that your bond is revoked, your Street Excavation and Obstruction Bond will be invalid until you are able to file another bond.
It is important that you understand the regulations pertaining to your bond and your permit. Any claims filed against your bond act as a mark against your “credit” for any future bond applications. If there is a claim filed against your bond, it is important that you consult with your surety agent immediately to identify the best course of action.
1 year - $115
2 years - $201.25
3 years - $287.50
Your bond will be issued within 1-3 days after you submit a completed application and payment.