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Permit bond

Michigan Permit Bond

Michigan has no general statewide permit bond. Under MCL 125.3505, a local government may require a performance guarantee, such as a surety bond, to make sure work under a zoning permit meets the ordinance and its conditions. The amount covers the estimated cost of the improvements and is due when the permit is issued.

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Bond at a glance
Michigan Permit BondPermit bond
Set by cities and counties
LawMCL 125.3505 (Michigan Zoning Enabling Act)
Accepted formsCash, certified check, letter of credit or surety bond
AmountThe estimated cost of the improvements tied to the permit
ObligeeThe city, village, township or county (held by the clerk of the legislative body)
Required byThe local government issuing the permit
How it works

Three steps to your bond.

  1. 01Apply onceTell us about your business and what the bond is for. One application covers most contractor bonds.
  2. 02The surety reviews itPropeller Bonds, our surety partner, reviews your application and sets the terms. We show you the terms before you commit.
  3. 03Sign and fileSign the bond and file it with whoever requires it: the project owner, agency or court. We help with the filing.
About this bond

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 Michigan

Michigan has no general statewide permit bond. Under MCL 125.3505, a local government may require a performance guarantee, such as a surety bond, to make sure work under a zoning permit meets the ordinance and its conditions. The amount covers the estimated cost of the improvements and is due when the permit is issued.

  • The guarantee can only be required when the local government is ready to issue the permit.

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.

FAQs

Common questions.

Does Michigan require permit bonds?

Permit bonds are set by each city or county, not usually by state law. The permit office tells you the amount and the bond form.

What does it cost?

You pay a premium, not the bond amount. The surety sets the premium after it reviews your application, usually as a percentage of the bond amount. We show you the terms before you commit.

How do I get one through BLDAssure?

Apply once with us. We collect the details the surety needs, Propeller Bonds (our surety partner) reviews the application and issues the bond, and we help you file it with whoever requires it.

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Other Michigan bonds.

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Michigan Right-of-Way Bond

Work in a public street, sidewalk or highway usually needs an encroachment or right-of-way permit, and many agencies require a bond with it.

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License bond

Michigan Contractor License Bond

Some states, and many cities and counties, make contractors post a bond to get or renew a license.

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Development bond

Michigan Subdivision Bond

Cities and counties often require a developer to bond the public improvements in a new subdivision or site plan, like streets, sidewalks, storm drains, sewer and water lines, before they approve the final map or permits.

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By state

Permit bonds in other states.

Alabama permit bondAlaska permit bondArizona permit bondArkansas permit bondCalifornia permit bondColorado permit bondConnecticut permit bondDelaware permit bondDistrict of Columbia permit bondFlorida permit bondGeorgia permit bondHawaii permit bondIdaho permit bondIllinois permit bondIndiana permit bondIowa permit bondKansas permit bondKentucky permit bondLouisiana permit bondMaine permit bondMaryland permit bondMassachusetts permit bondMinnesota permit bondMississippi permit bondMissouri permit bondMontana permit bondNebraska permit bondNevada permit bondNew Hampshire permit bondNew Jersey permit bondNew Mexico permit bondNew York permit bondNorth Carolina permit bondNorth Dakota permit bondOhio permit bondOklahoma permit bondOregon permit bondPennsylvania permit bondRhode Island permit bondSouth Carolina permit bondSouth Dakota permit bondTennessee permit bondTexas permit bondUtah permit bondVermont permit bondVirginia permit bondWashington permit bondWest Virginia permit bondWisconsin permit bondWyoming permit bond

Sources

  1. MCL 125.3505 (Onecle)

General information, not legal advice. Rules change; confirm the current requirement with the agency or owner that asks for the bond. Facts checked Oct 23, 2026.

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