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 Pennsylvania
Pennsylvania has no statewide statute requiring a permit bond as a condition of issuing building or work permits. Local governments set their own requirements under their general licensing powers. Philadelphia, for example, mandates a $100,000 surety bond under Philadelphia Code § 9-1009 for all excavation contractor licenses—a prerequisite for pulling excavation site permits—with the City's Department of Licenses and Inspections as the obligee.
- The excavation contractor bond must be issued by a surety company holding a certificate of authority to do business in Pennsylvania and a minimum surety underwriting limitation of $1,000,000.
- Philadelphia's bond covers failure to restore sidewalks, pavements, and road surfaces to municipal standards and protects the city against damages from improper excavation.
- No single statewide enabling statute mandates permit bonds; municipalities rely on their home-rule or municipal code licensing authority.
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.