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New Jersey bonds

Paterson, NJ — Street Opening Bond

For a permitted tunnel, opening, or excavation in a Paterson City street, confirm the restoration estimate with the City Engineer. The street-opening code sets the faithful-performance bond at 100% of estimated restoration cost, with a $1,000 minimum.

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Recorded state
New Jersey
Bond type
Right-of-Way / Street Work Bond
Category
Contractors & construction

What this bond does

Secure faithful performance of the work authorized by a Paterson street-opening permit. The City's definition includes the improved right-of-way, curbs, and sidewalks; this is not a contractor-license bond or security for every part of a private building project.

Who needs it
Applicants arranging an opening or excavation in or under a City street, including utility-related work. Confirm the permittee's legal name and the Engineer's project-specific requirements before using the existing RLI application.
Who it protects
The faithful-performance bond supports the City’s permitted-work obligation. Paterson separately addresses deposits for charges and liability insurance, so those requirements should not be treated as interchangeable with the restoration performance bond.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Use the restoration estimate, not a flat default

Section 435-39 sets the bond at the full estimated cost of restoring the opening, never less than $1,000. The Engineer advises the applicant of required performance and/or maintenance security during permit review, and the City Law Director must approve the surety form.

If more than one permit is contemplated in a year, the Engineer may require one performance bond in an amount the Engineer considers necessary. This does not establish a universal annual blanket amount.

Keep deposits and utility arrangements separate

The code also provides a deposit to cover required charges. A public utility or municipal authority with underground facilities may use a calendar-year bond for estimated fees and costs when it anticipates multiple openings, subject to the stated approval requirements.

That charges arrangement is distinct from the faithful-performance requirement. Ask the Engineer which documents are needed for your applicant and work rather than assuming an annual utility bond satisfies everything.

Apply, file, and obtain permission

Prepare the opening location, dimensions, proposed excavation information, restoration estimate, and plans required by the Engineer. Once the bond instructions are confirmed, continue through RLI and submit the issued document for the City's form approval and permit process.

The code states that a posted bond begins on posting and ends when the permittee receives the Engineer's certificate of final inspection. Do not substitute a fixed one-year purchase term or assume finishing the excavation ends the obligation. Coordinate work commencement and inspections with the Engineer after permit authorization.

Sources

Have these ready

  1. Confirm City jurisdiction and describe each opening or undertaking.
  2. Obtain the Engineer's restoration estimate and required bond amount, at least $1,000 under Section 435-39.
  3. Identify any multiple-permit arrangement, charges deposit, or additional maintenance security.
  4. Obtain the accepted surety wording, insurance requirements, and instructions for City review and filing.

Questions about this bond

Is the Paterson Street Opening Bond always $1,000?

No. That is the minimum under Section 435-39. The required amount is 100% of the estimated restoration cost, and the Engineer determines the applicable project requirements.

Does a utility's calendar-year charges bond replace the performance bond?

Do not assume so. The code addresses estimated fees and costs separately from faithful performance of permitted work. Have the Engineer identify the documents required for your permit.

When does the posted bond end under the code?

The stated endpoint is the permittee's receipt of the Engineer's certificate of final inspection. Confirm the City-approved instrument and any additional maintenance conditions; physical completion alone is not that certificate.

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