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 Virginia
Virginia has no statewide permit bond; each county, city or town sets its own. For example, under Va. Code § 62.1-44.15:57, a local agency issuing a grading, building or other permit for land-disturbing work may require a reasonable performance bond with surety, capped at the estimated cost of erosion and sediment control work plus up to 25% for administrative costs and inflation.
- Cash escrow, a letter of credit or another arrangement acceptable to the agency may be used instead of a surety bond.
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.