What the City of Los Angeles, CA General Improvement Performance Bond is for
Cities, counties and districts usually ask for this bond before they issue a permit or sign off on work. It guarantees the work meets their rules and that damage to public property is put right.
The bond amount is set by the agency, utility or fund that asks for it. If the bond holder doesn't meet their obligations, a valid claim is paid up to that amount, and the bond holder repays the surety.
What the price depends on
The starting rate. A credit check and an underwriter's review set your final price, and you see it before you pay.