Which of the following is typically required to obtain a permit for a construction project?

• A. Permit bond
• B. Performance bond
• C. Bid bond
• D. Maintenance bond

Answer: (A)

A permit bond is typically required to obtain a construction permit because it provides financial assurance that the project will be carried out in accordance with the permit’s conditions and applicable codes. When a building department issues a permit, it relies on the bond to cover costs if the project fails to comply—such as penalties, required corrections, or enforcement actions—to ensure the work proceeds and complies with laws.

Other bonds serve different purposes: a performance bond guarantees that the contractor will complete the project as contracted; a bid bond protects the owner against a bidder backing out after winning the contract; a maintenance bond covers repairs or warranty work after project completion. Since the permit sets the rules for how the project must be built and operated, the permit bond directly relates to obtaining and maintaining that permit.