Royal Oak - City Sidewalk Builder $1,000 Bond Guide

What is the City Sidewalk Builder Bond?

The City of Royal Oak, Michigan, requires contractors working on sidewalks to obtain a $1,000 surety bond before beginning construction. This bond serves as a financial guarantee that the contractor will comply with local building codes, permit requirements, and construction regulations. It also provides protection to the city and the public in case of incomplete, substandard, or unsafe sidewalk work.

Why is the Bond Required?

The bond ensures that:

• Contractors complete sidewalk construction according to city regulations.

• Public safety and infrastructure integrity are maintained.

• The city or property owners are financially protected if a contractor fails to fulfill their contractual obligations.

In the event of non-compliance or poor workmanship, the city may file a claim against the bond to recover damages or cover repair costs.

Who Needs This Bond?

This bond is required for:

• Sidewalk construction contractors working within Royal Oak.

• Paving companies handling public or private sidewalk projects.

• Subcontractors performing sidewalk repairs or modifications.

• Any contractor performing work within the city’s right-of-way.

It is typically required before obtaining an Engineering Permit for construction.

Bond Amount and Coverage

• Bond Amount: $1,000

• Obligee: City of Royal Oak (the entity requiring the bond)

• Principal: The contractor or construction company obtaining the bond

• Surety: The bond provider guaranteeing compliance

This bond is a type of license bond, meaning it does not serve as insurance for the contractor but rather as a financial assurance for the city and public.

Application Process for the Bond

To obtain a $1,000 Sidewalk Builder Bond in Royal Oak, follow these steps:

1. Choose a Surety Bond Provider
   
   

   • Contractors must work with an approved surety company that provides municipal contractor bonds.

   • Many insurance agencies and bonding companies offer these bonds online.

2. Submit Required Information
   
   

   • Business Name & Contact Details

   • Contractor’s License Number (if applicable)

   • Business Address

   • Employer Identification Number (EIN)

   • Financial History (for some bonding companies)

3. Pay the Bond Premium
   
   

   • The premium cost varies but is typically a small percentage of the bond amount.

   • Some providers offer instant approval for small bond amounts like this.

4. Receive and File the Bond
   
   

   • Once approved, you’ll receive a bond certificate.

   • Submit it along with your Engineering Permit application to the Royal Oak Engineering Division.

Cost of the Bond

The cost of the bond is not the full $1,000—instead, contractors pay a small percentage of the bond amount as a premium. Factors affecting the cost include:

• The contractor’s credit score and financial history.

• The surety provider’s rates.

• Some bonds are available for as little as $50–$100 per year.

Engineering Permit Requirement

Before beginning any sidewalk work in Royal Oak, contractors must obtain an Engineering Permit from the city. This permit requires:

• Submission of project plans and specifications.

• Payment of permit fees.

• Proof of the $1,000 Sidewalk Builder Bond.

• Compliance with all local construction and safety standards.

Where to Apply for an Engineering Permit?
Royal Oak’s Engineering Division handles permit applications. More details can be found on the city’s website:
📌 Royal Oak Engineering Permit Instructions

Bond Renewal and Expiration

• The bond is typically valid for one year and must be renewed annually.

• If the bond expires, the contractor may face penalties or permit revocation.

• Renewal costs depend on the contractor’s bonding history and provider rates.

What Happens If a Claim is Filed Against the Bond?

If a contractor:

• Fails to complete the project as per city standards.

• Uses substandard materials or unsafe practices.

• Damages public property during sidewalk construction.

The city may file a claim against the bond. If the claim is valid, the surety company will compensate the city up to the bond amount ($1,000). However, the contractor is responsible for repaying the surety company.

Where to Obtain the Bond?

Many bonding agencies and insurance providers offer instant approval for this type of bond. Some online options include:

• Surety Bond Direct

• The Hartford

• Colonial Surety

• Surety Bonds Market

Final Thoughts

If you're a contractor planning to build or repair sidewalks in Royal Oak, securing the $1,000 Sidewalk Builder Bond is a crucial step. It not only ensures compliance with city laws but also demonstrates professionalism and accountability in your work. Make sure to check the latest permit requirements and renewal policies to avoid any disruptions in your projects.

For the most up-to-date details, always refer to the City of Royal Oak’s official website:
🌍 City of Royal Oak Engineering Division

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