What a permit bond is
Some cities and counties require a bond before they issue a building or work permit. It guarantees you'll follow local codes and the permit conditions, and pays the agency if you don't, for example if public property is damaged.
In Arizona
No Arizona state statute specifically mandates a permit bond statewide. Individual municipalities set their own requirements: the City of Phoenix requires a Right-of-Way Construction Assurance (cash bond, performance bond, or letter of credit) before issuing a permit for work in public rights-of-way, pursuant to Phoenix City Code Chapters 31 and 32, in an amount equal to the cost of the right-of-way work. Other Arizona cities and counties have similar local rules.
- A.R.S. § 34-222 governs surety bonds on public construction contracts but does not specifically address permit bonds for work in municipal rights-of-way.
- Arizona Revised Statutes Title 9 (Cities and Towns) grants municipalities general authority to regulate public streets and rights-of-way, which is the enabling basis for local permit bond requirements.
You need this bond if you're
- A contractor pulling permits where the city or county requires a bond
- Demolition and house-moving contractors
- Sign, sewer and grading contractors
- Owner-builders in some jurisdictions
What the surety looks at
Basic business details and credit.