Michigan Driveways and Street Approaches Bond: Everything You Need to Know

If you're a contractor working on driveways, sidewalks, or street approaches in Michigan, you may need to secure a Michigan Driveways and Street Approaches Bond. This bond ensures that contractors comply with local and state regulations when performing work that affects public infrastructure.

From my experience, I’ve seen that many contractors don’t realize they need this bond until they apply for a permit, which can delay their projects. Understanding the purpose, cost, and process of obtaining this bond can help you stay compliant and avoid unnecessary setbacks.

In this guide, I’ll walk you through everything you need to know about the Michigan Driveways and Street Approaches Bond, including its purpose, who needs it, how much it costs, and how to obtain it.

What Is a Michigan Driveways and Street Approaches Bond?

A Michigan Driveways and Street Approaches Bond is a type of license and permit bond that guarantees contractors will follow local regulations and complete work to required standards. The bond protects municipalities and the public by ensuring that driveway, sidewalk, and street approach projects are performed correctly.

When a contractor obtains this bond, they provide a financial guarantee that:

✅ Work will be done according to city, county, and state regulations.
✅ Public infrastructure will not be damaged during construction.
✅ If damages occur, the bond will cover the costs of repairs.

If a contractor fails to meet these conditions, the municipality can make a claim against the bond to recover damages. This ensures that taxpayers don’t have to cover the costs of substandard work or repairs.

Why Is a Michigan Driveways and Street Approaches Bond Required?

In my professional experience, I’ve come to see that municipalities require this bond for several key reasons:

1️⃣ To Ensure Public Safety – Poorly constructed driveways and street approaches can create hazards for pedestrians and drivers. The bond ensures that contractors follow safety standards.

2️⃣ To Protect Public Infrastructure – Sidewalks, curbs, and streets must meet specific engineering and material standards. The bond helps protect the integrity of public roads and walkways.

3️⃣ To Guarantee Compliance – Many cities and counties have strict guidelines for construction work. The bond ensures contractors adhere to all regulations, avoiding the need for costly corrections.

4️⃣ To Hold Contractors Accountable – If a contractor fails to complete a project correctly or causes damage, the bond ensures there is financial coverage to fix any issues.

Who Needs a Michigan Driveways and Street Approaches Bond?

From my experience, I’ve found that this bond is commonly required for the following professionals:

✔ General Contractors – Contractors overseeing the construction of driveways, sidewalks, and street approaches.
✔ Concrete Contractors – Those working specifically with concrete installation for public access areas.
✔ Paving Contractors – Asphalt and paving specialists working on driveways or street connections.
✔ Excavation Contractors – Professionals responsible for ground preparation, grading, and trenching.
✔ Municipal and Utility Contractors – Any contractor performing work that affects public infrastructure.

Each city or county in Michigan may have different bonding requirements, so it’s important to check with the local permitting office before starting a project.

How Much Does a Michigan Driveways and Street Approaches Bond Cost?

The cost of a Michigan Driveways and Street Approaches Bond depends on several factors, including:

1. Bond Amount Required

Different municipalities have different bond requirements, typically ranging from $5,000 to $25,000. The larger the required bond amount, the higher the cost.

2. Contractor’s Credit Score

From my observation, surety companies assess a contractor’s credit score to determine their risk level. Contractors with strong credit can expect to pay a lower premium, while those with lower credit scores may pay a higher rate.

3. Business Experience and Financial Stability

Surety companies also consider a contractor’s industry experience and business financials. Established contractors with a good track record often receive better rates.

Estimated Costs

✔ Good credit (700+): 1% – 3% of bond amount (e.g., a $10,000 bond may cost $100 – $300 per year).
✔ Fair credit (600 – 699): 3% – 5% of bond amount.
✔ Poor credit (Below 600): 5% – 10% of bond amount.

For contractors with less-than-perfect credit, we can often find solutions to help secure the bond at a reasonable cost.

How to Obtain a Michigan Driveways and Street Approaches Bond

Getting bonded is a simple process if you know what steps to take. I’ve helped many contractors navigate this process quickly, avoiding unnecessary delays. Here’s what you need to do:

Step 1: Determine the Bond Amount

Check with your local city or county permit office to find out the exact bonding requirement for your project.

Step 2: Apply for the Bond

Submit an application with a licensed surety bond provider. You’ll need to provide:
✔ Business details (Company name, address, and license information).
✔ Personal details (Social security number for credit check).
✔ Project details (Location, bond amount, and work description).

Step 3: Get a Quote

The surety company will evaluate your creditworthiness and business history to determine your bond premium.

Step 4: Pay for the Bond

Once approved, pay the bond premium to activate your coverage.

Step 5: File the Bond

Submit the bond to the city or county that requires it to complete your permit application.

What Happens If a Bond Claim Is Filed?

If a contractor fails to meet project requirements or causes damage to public property, the municipality can file a claim against the bond. Here’s what happens next:

1️⃣ The surety company investigates the claim.
2️⃣ If the claim is valid, the surety pays the municipality up to the bond amount.
3️⃣ The contractor is responsible for reimbursing the surety for any paid claims.

This is why it’s crucial for contractors to follow all regulations and complete work correctly—to avoid costly claims that can damage their reputation and financial standing.

Common Michigan Cities That Require This Bond

Many Michigan cities and counties require a Driveways and Street Approaches Bond as part of their permitting process, including:

✔ Detroit
✔ Grand Rapids
✔ Lansing
✔ Ann Arbor
✔ Flint
✔ Warren
✔ Sterling Heights
✔ Kalamazoo
✔ Dearborn

If you’re unsure whether your city requires this bond, it’s best to check with the local permit office before starting your project.

How We Can Help

We’ve worked with contractors across Michigan to help them secure the right bonds quickly and affordably. Our goal is to make the bonding process as smooth as possible, so you can focus on your projects.

✔ Fast approvals – Get bonded in as little as 24 hours.
✔ Competitive rates – We work with multiple sureties to find the best price.
✔ Expert guidance – We’ll walk you through the process step by step.

If you need a Michigan Driveways and Street Approaches Bond, reach out to us today. We’ll help you get bonded so you can focus on what you do best—building and improving Michigan’s infrastructure!

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