Why Is the Bond Required?

The bond is required by Berwyn to:

1. Ensure Compliance: Guarantees contractors follow city regulations and safety standards for excavation.

2. Protect Public Property: Covers damages to roads, sidewalks, and utilities caused during excavation.

3. Promote Accountability: Holds contractors financially responsible for their actions and any harm they cause.

Who Needs the Bond?

This bond is required for:

1. Excavating Contractors: Professionals specializing in digging, trenching, grading, or other earthmoving services.

2. General Contractors: Those who perform excavation as part of broader construction projects.

3. Utility Contractors: Companies installing or repairing underground utilities like water, gas, or electrical lines.

If your work involves excavation within Berwyn, this bond is a mandatory part of obtaining a contractor license or project permit.

How Does the Bond Work?

The Berwyn City Excavating Contractor Bond is a three-party agreement involving:

• Principal: The excavating contractor or business applying for the bond.

• Obligee: The City of Berwyn, which requires the bond to ensure compliance.

• Surety: The bonding company that issues the bond and guarantees payment if a valid claim is filed.

If the principal fails to fulfill their obligations—such as by causing property damage or abandoning a project—a claim can be filed against the bond. The surety may compensate the claimant, but the principal is legally obligated to reimburse the surety for any amounts paid.

Steps to Obtain the Bond

Securing a Berwyn City Excavating Contractor $25,000 Bond involves a few straightforward steps:

1. Verify Bond Requirements: Confirm the bond amount and conditions with Berwyn’s licensing or permitting office.

2. Choose a Surety Provider: Select a reputable bonding company experienced in contractor bonds.

3. Complete the Application: Provide details about your business, financial history, and bond requirements.

4. Pay the Premium: The premium is typically a percentage of the $25,000 bond amount, influenced by your credit score and business history.

5. Submit the Bond: Include the bond with your application for a license or permit to finalize approval.

Cost of the Bond

The cost of the Berwyn City Excavating Contractor Bond depends on:

• Credit Score: Higher credit scores often result in lower premiums.

• Business Experience: Established contractors with a proven compliance record may qualify for reduced rates.

• Financial Stability: Demonstrating strong financial responsibility can lower bond costs.

Premiums for a $25,000 bond typically range from 1% to 5% of the bond amount, meaning you can expect to pay between $250 and $1,250 annually.

How to Avoid Bond-Related Issues

To maintain your bond and avoid claims:

1. Follow Local Regulations: Familiarize yourself with Berwyn’s excavation codes and adhere to them strictly.

2. Protect Public Property: Take measures to prevent damage to streets, sidewalks, and nearby utilities during excavation.

3. Complete Projects Responsibly: Ensure all work meets required standards and is completed on time.

4. Resolve Issues Promptly: Address disputes or concerns with clients or the city quickly to prevent them from escalating.

Operating responsibly minimizes the risk of claims and helps maintain your professional reputation.