Bonds Information
A bond is required for Demolition, Sediment Control, and Public Right-of-Way permits. The bond ensures the work is completed and the site is stabilized or restored per all County codes and standards. The County accepts four types of bonds - cash, performance, letter of credit or certificate of guaranty.
Public Right of Way Bond CalculatorBonds for all right-of-way permits are calculated using the Public Right of Way Bond Calculator.
- Demolition Permits – The bond amount is based on the estimated cost of the demolition activities; the minimum bond is $400.00
- Sediment Control Permits - The bond amount is calculated using the following formula: .02 x total square feet of disturbed area, plus $300.00, maximum of $10,000 for sediment control. If the project includes stormwater management devices, an additional amount for the actual cost of construction of the devices is required.
- Public Right of Way – Bonds for most right-of-way permits are calculated using the County “ROW Bond Estimating Prices” list. This list is used to itemize specific construction activity related to the project. These costs are approved by DPS as part of the plan review process. The prices are an average based on surveys periodically taken from the construction industry and updated every 1 to 3 years. Bonds for smaller projects are generally flat fee amounts that vary depending on scope of work. Please use the Bond Calculator to get the estimated bonds fee.
The applicant will be notified of the required bond amount, generally after plan review is completed. The bond must be posted prior to issuance of the construction permit.
You should notify DPS in writing that the work has not started and there is no intention of proceeding with work. We will inspect the site, confirm no work has begun, review the permit requirements based on development approvals and, if possible, cancel the permit and return the bond.
The applicant must schedule a final inspection when the work is completed. Once the DPS inspector deems the work has been completed according to all County codes and standards, the permit will be finalized and the bond returned to the applicant.
It typically requires 4-6 weeks for receipt.
If the permittee is unwilling or unable to complete the work, DPS will seize the funds from the bond to complete the work.
Cash
Cash Bonds may be posted in the form of cash, check, or money order. Checks may be personal, certified, corporate or cashier. It is important to note that regardless of who provides payment of the bond, the refund check will be mailed to the permitee of record.
Certificate of Guaranty
A certificate of guaranty may only be submitted by members of the Builders Developers Guaranty Group affiliated with the Maryland Building Industry Association (MBIA).
Letter of Credit
A letter of credit is executed by a financial institution. The issuer must use the letter of credit template provided by Montgomery County.
Performance Bond
A performance bond is executed by an insurance company. The insurer must use the the performance bond template provided by Montgomery County. This type of bond must include a Power-of-Attorney statement.