Greensboro Sedimentation Control Bond: A Comprehensive Guide

May 16, 2022

Greensboro Sedimentation Control Bond

This guide provides information for insurance agents to help their customers obtain a Greensboro Sedimentation Control bond

At a Glance:

  • Average Cost: Between 1% to 12.5% of the bond amount per year based on the applicant’s credit history
  • Bond Amount: $2,000 per disturbed acre
  • Who Needs it: Developers engaging in land-disturbing activities on 5 or more acres of land in Greensboro, North Carolina
  • Purpose: To ensure the city will receive compensation for financial harm if the contractor violates the terms of their permit
  • Who Requires the Bond: The Greensboro Development Services Division

Background

Greensboro Land Development Ordinance (LDO) 30-12-6-1.1 requires all developers conducting land-disturbing activities on one more acre of land, or certain land within a watershed critical area, to obtain a permit with the Development Services Office. The Greensboro city council enacted the permit requirement to ensure that land-disturbing activities do not harm the general public. To provide financial security for the enforcement of the permit requirement, developers seeking to conduct land-disturbing activities on 5 or more acres of land must purchase and maintain a surety bond to be eligible for a permit.

What is the Purpose of the Greensboro Sedimentation Control Bond?

Greensboro requires developers conducting land-disturbing activities on 5 or more acres of land to purchase a surety bond as part of the application process to obtain a grading permit. The bond ensures that the city will receive compensation for financial harm if the developer fails to abide by the regulations outlined in Greensboro LDO 30-12-6.12. Specifically, the bond protects the city if the developer fails to complete the project or does not pay for any labor or materials. In short, the bond is a type of insurance that protects the public if the developer violates the terms of their permit.

Greensboro Sedimentation Control Bond Form

Greensboro Sedimentation Control Bond Form

How Can an Insurance Agent Obtain a Greensboro Sedimentation Control Surety Bond?

BondExchange makes obtaining a Greensboro Sedimentation Control bond easy. Simply log in to your account and use our keyword search to find the “Greensboro” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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Is a Credit Check Required for the Greensboro Sedimentation Control Bond?

Surety companies will run a credit check on the bond applicant to determine eligibility and pricing for the Greensboro Sedimentation and Control bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.

How Much Does the Greensboro Sedimentation Control Bond Cost?

The Greensboro Sedimentation Control bond can cost anywhere between 1% to 12.5% per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $10,000 bond requirement.

$10,000 Sedimentation Control Bond Cost

Credit Score Bond Cost (1 year)
720+ $100
680 – 719 $150
650 – 679 $200
600 – 649 $400
550 – 599 $750
500 – 549 $1,250

Who is Required to Purchase the Bond?

Greensboro requires developers that are disturbing 5 or more acres of land to purchase a surety bond as a prerequisite to obtaining a grading permit. To paraphrase Greensboro LDO 30-15-12, “land-disturbing activity” is any activity that results in the change of the land’s natural cover or topography which contributes to sedimentation.

Who is Required to Obtain a Grading Permit in Greensboro?

Greensboro requires developers to obtain a grading permit if the proposed land-disturbing activity meets any of the following criteria:

  • Disturbs more than one acre
  • Takes place on highly erodible soils with a “k” factor greater than 0.36 in watershed critical areas (The Development Services Office will assist in determining the land’s k factor)
  • Takes place in Tier 1 or 2 of a watershed critical area

How do Developers Apply for a Grading Permit in Greensboro?

Developers in Greensboro must navigate several steps to obtain a grading permit. Below are the general guidelines, but applicants should refer to the Erosion and Sediment Control Plan Submittal Packet for details on the process.

Permit Period – All Greensboro Grading Permits will expire if the work has not been completed within one year from the date of issuance. However, developers may renew their permits for an extra 180 days if they need to.

Step 1 – Create an Erosion and Sedimentation Control Plan

Developers must create an erosion and sedimentation control plan if they intend on conducting land-disturbing activities on more than one acre of land. The purpose of this plan is to describe to the Development Services Division the actions the developer will take to prevent accelerated soil erosion and sedimentation.

All plans must be prepared by, and bear the seal and signature of, a registered professional engineer, architect, landscape architect, or surveyor. Developers should refer to pages 7 – 9 of the Erosion and Sediment Control Plan Submittal Packet for information on what each plan must contain.

Step 2 – Complete the Application

After creating their erosion and sedimentation control plan, developers must complete the grading permit application and accompany financial responsibility forms.

Step 3 – Submit the Documents for Initial Review

Developers are required to submit their completed erosion and sedimentation control plans, permit applications, and financial responsibility documents online through Greensboro’s Plan Review and Tracking System. All documents must be submitted as PDF files.

The Development Services Division will conduct an initial review and notify the developer if their application has been approved.

Step 4 – Purchase a Surety Bond

Developers that are disturbing 5 or more acres of land must purchase and maintain a surety bond with a limit of $2,000 per disturbed acre.

Step 5 – Submit Hard Copies of the Application

Once their applications have been reviewed, developers are required to submit three sealed copies of the approved control plan, as well as the original notarized grading permit application and financial responsibility forms, to the following address:

City of Greensboro Water Resources Department
Erosion and Sediment Control Section
2602 South Elm-Eugene St.
Greensboro, NC 27406

What are the Liability Insurance Requirements for Grading Permits in Greensboro?

Greensboro does not require developers to purchase any form of liability insurance as a prerequisite to obtaining a grading permit. However, developers may be required to purchase insurance before being issued a building permit or obtaining a business license.

How Do Greensboro Developers File Their Sedimentation Control Bonds?

Developers in Greensboro should submit their completed bond forms, including the power of attorney, to the following address:

City of Greensboro Water Resources Department
Erosion and Sediment Control Section
2602 South Elm-Eugene St.
Greensboro, NC 27406

The surety bond requires signatures from both the surety company that issues the bond and from the permit applicant. The surety company should include the following information on the bond form:

  • Legal name, state of incorporation, address, phone number, and email of entity/individual(s) buying the bond
  • Surety company’s name, state of incorporation, address, and phone number, and email
  • Bond amount
  • Date the bond is signed

What Can Greensboro Developers Do to Avoid Claims Against Their Sedimentation Control Bonds?

To avoid claims on their Sedimentation Control bonds, developers Greensboro must ensure that they:

  • Adhere to the terms and conditions of their grading permits
  • Complete the project
  • Pay all contractors and subcontractors as well as suppliers of materials

What Other Insurance Products Can Agents Offer Developers in Greensboro?

Most reputable developers will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Greensboro Developer Customers?

Greensboro conveniently provides the public with a list of active building permits in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-06-02T16:42:46-04:00