Understanding Glendale, CA’s Faithful Performance Grading Permit Bond

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Glendale, California, is a vibrant city known for its rich cultural heritage, stunning landscapes, and bustling economy. Whether you’re a homeowner, a business owner, or a developer, navigating the process of obtaining permits for construction projects can be daunting. One essential aspect of this process is the Faithful Performance Grading Permit Bond, a crucial requirement for construction projects involving grading in Glendale.

Why is it Required?

The requirement for a Faithful Performance Grading Permit Bond is primarily aimed at safeguarding public safety and welfare. Grading projects, which involve the movement of earth and terrain, have the potential to impact the surrounding environment, infrastructure, and neighboring properties. By mandating this bond, the city aims to hold contractors accountable for adhering to the approved plans, minimizing risks, and mitigating potential negative consequences.

How Does it Work?

When applying for a grading permit in Glendale, contractors are required to obtain a Faithful Performance Grading Permit Bond from a licensed surety bond provider. The bond functions as a contractual agreement between the contractor (the principal), the city (the obligee), and the surety company (the issuer). In the event of non-compliance with the terms of the permit, such as failure to complete the project as planned or address any resulting damages, the bond ensures that the city can seek financial compensation to rectify the situation.

Key Components of the Bond

  1. Principal: The contractor or developer who obtains the bond and is responsible for fulfilling the obligations outlined in the grading permit.
  2. Obligee: The City of Glendale, which requires the bond as a condition for issuing the grading permit. The obligee is entitled to make a claim against the bond if the principal fails to meet their obligations.
  3. Surety Company: The entity that issues the bond and provides financial backing. If a valid claim is made against the bond, the surety company will initially cover the costs, but the principal is ultimately responsible for reimbursing the surety.
  4. Bond Amount: The specified amount of the bond, determined by the city based on the size and scope of the grading project. This amount serves as the maximum limit of liability for the surety company.

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Benefits for Contractors and Developers

While obtaining a Faithful Performance Grading Permit Bond may seem like an additional bureaucratic hurdle, it offers several benefits for contractors and developers:

  1. Compliance Assurance: By obtaining the bond, contractors demonstrate their commitment to complying with the approved plans and regulations, enhancing their credibility and reputation.
  2. Risk Management: The bond provides financial protection for both the city and neighboring properties in the event of damages or non-compliance, reducing the potential for legal disputes and liabilities.
  3. Project Approval: Obtaining the required bond is a prerequisite for obtaining a grading permit from the city, allowing contractors to proceed with their projects without delays or complications.

Cost and Duration

The cost of a Faithful Performance Grading Permit Bond varies depending on factors such as the bond amount, the contractor’s creditworthiness, and the surety company’s rates. Typically, contractors can expect to pay a percentage of the bond amount as a premium, which is usually between 1% to 5% of the total bond amount.

The duration of the bond typically coincides with the duration of the grading permit. Once the project is completed satisfactorily and the city has conducted a final inspection, the bond can be released or terminated.


In summary, the Faithful Performance Grading Permit Bond is a vital requirement for construction projects involving grading in Glendale, California. By providing a financial guarantee of compliance with approved plans and regulations, the bond ensures the safety and welfare of the public while minimizing risks and liabilities for contractors and developers.

While obtaining the bond incurs upfront costs and administrative requirements, it ultimately serves as a valuable tool for promoting responsible construction practices and fostering trust between stakeholders. By understanding the purpose and mechanics of the Faithful Performance Grading Permit Bond, contractors and developers can navigate the permitting process with confidence and ensure the successful completion of their projects in Glendale.

What is a Faithful Performance Grading Permit Bond?

In simple terms, a Faithful Performance Grading Permit Bond is a type of surety bond required by the City of Glendale as a guarantee that construction projects involving grading will be completed according to the approved plans and in compliance with all relevant regulations and codes. It serves as a form of protection for the city and its residents, ensuring that the project will be carried out responsibly and that any potential damages or liabilities will be addressed.

Frequently Asked Questions

Can the Faithful Performance Grading Permit Bond be Transferred to Another Project?

In most cases, the Faithful Performance Grading Permit Bond is specific to the project for which it was obtained. However, there may be circumstances where a contractor wishes to transfer the bond to another project. This typically requires approval from the surety company and the city, as well as adjustments to the bond amount and terms to align with the new project’s requirements. Contractors should consult with their surety agent and the relevant city authorities to explore the feasibility of transferring the bond.

What Happens if the Contractor Defaults on the Bond Obligations?

If the contractor fails to fulfill their obligations under the Faithful Performance Grading Permit Bond, such as completing the project as planned or addressing any damages or non-compliance issues, the city may make a claim against the bond. In such cases, the surety company initially covers the costs, up to the bond amount. However, the contractor remains ultimately responsible for reimbursing the surety company for any payments made on their behalf. Failure to do so can result in legal action and damage to the contractor’s reputation and creditworthiness.

Are There Alternatives to Obtaining a Faithful Performance Grading Permit Bond?

While the Faithful Performance Grading Permit Bond is the standard requirement for grading projects in Glendale, there may be alternative options available in certain circumstances. For example, contractors with exceptionally strong financial profiles may be able to obtain self-insurance or post a cash deposit with the city as an alternative to obtaining a bond. However, these alternatives are typically subject to strict eligibility criteria and may not be suitable or cost-effective for all contractors. It’s essential for contractors to discuss their options with their surety agent and the city’s permitting authorities to determine the most appropriate course of action.

Account Executive at Axcess Surety
Glenn is dedicated to helping contractors get surety bonds and support. Glenn specializes in the construction industry with expertise in bids bonds, performance bonds and payment bonds. Glenn regularly published articles and resources for all things surety bonds.
Glenn Allen
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