WHY IS A BOND REQUIRED?

A bond is required for any permit issued, where the work will be within a public right-of-way or easement and will benefit the public at large or as specified by the County Code.

HOW IS THE BOND AMOUNT DETERMINED?

DPS publishes and has available a list of "Estimated Bond Prices". It is a list of specific construction activity costs. The prices are an average based on surveys periodically taken from the contracting community (1 to 3 years). Estimate My Bonds

HOW LONG IS THE BOND NEEDED?

DPS requires that the bond be valid for the duration or life of the permit. (and Special Use Permit, if applicable) is issued.

WHEN SHOULD A BOND BE SUBMITTED?

• If the application is for a Drive Way Permit, the bond should be submitted after the amount has been determined by this office.



• If the application is for a Grading Permit, the bond should be submitted along with the completed application which includes the estimated amount.

WHAT IS REQUIRED FOR SUBMITTING AND GETTING A PERFORMANCE BOND APPROVAL?

In order to clarify procedures for completing application and bond forms, the following checklist has been developed. Your cooperation in the use of this guide will help expedite processing of performance bonds.

The numbered items correspond to numbers on the performance bond. (Information may be typed or printed and must be legible).

1. Full name of the person, persons, company, corporation or partnerships submitting an application for permit.


A. Application for a permit must be signed by the applicant. Names on the permit application and the bond must correspond.

B. If the applicant is a corporation, the person signing must hold the office of the president or vice-president. The signature is to be attested to be the secretary or assistant secretary. All signatures must have a printed or typewritten name beneath and indicate the title of the office held by the person signing the application.

C. The signature of an individual as permittee on a bond must have the word "SEAL" or "L.S." immediately after the signature; this includes someone signing for a partnership, but not for a corporation.

D. Bonds from corporations must have a corporate seal.


2. Name of the insurance company preparing the bonding document.



3. State of which the insurance company resides.



4. The bond amount written out. Example: Two-Thousand-Three-Hundred ($2,300)



5. Date must match the certificate date on the Power-of-Attorney.

General wording on the bond shall correspond to wording approved by the County Attorney's Office. Sample forms are available at the Department of Permitting Services.

Both the bonding company and the power of attorney signing for the bonding company must be registered with the Montgomery County, Clerk of the Circuit Court.

CERTIFICATION LETTER NOTE :

In order to establish a more efficient and expeditious review process for Performance Bonds, the County Attorney's Office is now requiring that any Performance Bonds posted with the Subdivision Development Section, Department of Permitting Services, must be accompanied by an attached certification letter. This letter should be completed by the applicant and presented, along with the performance bond at the Recording Department, Room 212, Judicial Center, 50 Maryland Avenue, Rockville, Maryland for signatures. This verifies for the County Attorney's Office that the bonding company and the attorney-in-fact who signed the bond are both registered with the Clerk of the Circuit Court. A sample certification letter can be downloaded here

After the certification letter has been acquired by the applicant, the permit application, performance bond, certification letter and permit fee can be presented by the applicant at the Subdivision Development Section counter.

WHAT HAPPENS IF NO WORK HAS STARTED AND I WANT TO CANCEL THE PERMIT?

Notify DPS that the work has not started and that there is no intention on beginning work. DPS will inspect the site, confirm that no work has begun, cancel the permit and return the bond.

WHAT HAPPENS IF WORK IS STARTED BUT NOT COMPLETED?

If the contractor/permittee is not willing or not able to complete the work, DPS will seize the funds from the bond to complete the work.

WHEN WILL THE BOND BE RETURNED?

Contractor/permittee is required to call DPS for final inspection. DPS will release the bond after a final inspection has been completed and approved.

HOW QUICKLY WILL IT BE RELEASED?

Processing time for release of bonds varies according to workload and complexity of the permit.

• Driveway permits - approximately two weeks after the final inspection is completed and approved.



• Grading permits - approximately two weeks after the final inspection is completed and approved.



• Storm drainage permits - approximately two weeks after the final inspection is completed and approved.



• Paving permits - approximately two weeks after the final inspection is completed and approved.