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 New Hampshire
New Hampshire towns and cities set permit bonds. RSA 236:10 lets the authority that permits excavation in a highway require a bond, and towns set their own amounts; for example, Salem requires a permit bond or letter of credit of at least $5,000 for street excavation permits.
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.