# Washoe County Improvement Guarantees, Warranty and Excavation Permit Bonds URL: https://mycontractorsinsurancequote.com/nevada/metros/reno/washoe-county Updated: 2026-10-29 · Reviewed by the Principal, Gleason Insurance Brokers, LLC Publisher: My Contractors Insurance Quote, a website of Gleason Insurance Brokers, LLC Unincorporated Washoe County sizes subdivision improvement security at the County Engineer's estimate of the improvements plus a contingency amount, under a code section amended by Ordinance 1735 effective April 18, 2025. Its subdivision improvement agreement caps reductions at 90% of completed work and 75% of the guarantee, and the subdivider warrants the improvements for one year after county acceptance. Street and utility work in county right-of-way adds a $5,000 performance bond and $1,000,000 and $2,000,000 liability limits with Washoe County as additional insured. ## Key Decision Points - Security equals the County Engineer's cost estimate plus a contingency, with no fixed percentage (Ord. 1735, effective April 18, 2025). - Accepted forms include a bond, irrevocable letter of credit, certificate of deposit or savings or money market account. - Reductions are limited to 90% of completed work value and never more than 75% of the guarantee. - The subdivider warrants the improvements for one year from county acceptance. - Encroachment and excavation permits need a $5,000 bond and $1,000,000 and $2,000,000 liability limits. - These rules cover unincorporated areas; Reno and Sparks set their own. ## Unincorporated Washoe County, Not Reno or Sparks Washoe County's planning and engineering rules govern land outside the cities of Reno and Sparks, which write their own improvement agreements, permit forms and insurance terms. A developer assembling land in the Truckee Meadows can have one phase under the county and the next inside a city, and each set of documents has to be read on its own. Growth keeps the county's share of that work large. Washoe County's sustainability office, using the Truckee Meadows Regional Planning Agency's 2024 Regional Plan consensus forecast, projects population rising from 520,826 in 2025 to 606,009 in 2045, with employment going from 328,215 to 378,794. The regional plan's public infrastructure domains include potable water, wastewater, flood control and stormwater drainage, the same systems most subdivision guarantees secure. The metro-wide picture, including city permits and water service, is covered under [Reno-area dust, right-of-way and water rules](https://mycontractorsinsurancequote.com/nevada/metros/reno). ## The Guarantee of Completion Under Ordinance 1735 Washoe County Code section 110.610.40, Guarantee of Completion, was amended by Ordinance 1735 with provisions effective April 18, 2025. It requires a bond, financial assurance document or other guarantee in a sum that, in the County Engineer's opinion, equals the cost of the improvements plus a contingency amount. There is no fixed percentage in the code, so the engineer's estimate drives the face amount. The county may also use the guarantee to make a site safe if work stops. The draft ordinance the Board of County Commissioners heard on March 18, 2025, also asks for a faithful performance bond estimate prepared by a Nevada registered engineer with the preliminary submittal. A developer can expect the estimate to be prepared, checked and possibly revised before the map moves, and the surety will underwrite the final number, not the first draft. State law gives the county that room. NRS 278.380 lets a governing body require an improvement agreement to be secured by a good and sufficient bond or other security in the amount it determines. How Nevada agencies size and release map security is covered under [Nevada subdivision improvement bonds](https://mycontractorsinsurancequote.com/construction-surety-bonds/subdivision-improvement-bonds/nevada). ### Illustrative scenario: A Foothill Subdivision Outside Reno City Limits Pinecrest Basin Homes, a fictional developer, is mapping 96 lots on unincorporated foothill land north of Reno. A Nevada registered engineer prepares the faithful performance bond estimate, and the County Engineer sets the guarantee at $3,600,000 including contingency. The developer posts a surety bond from a Nevada-authorized company and a separate grading and paving bond. After 12 months, with about $2,400,000 of work complete, the developer asks for a reduction and learns the 90%-of-completed-work cap limits it to $2,160,000, below the 75% ceiling of $2,700,000. The utility subcontractor files a $5,000 excavation bond and a certificate showing $1,000,000 and $2,000,000 limits with Washoe County as additional insured for its tie-in on a county road. Because the site sits in the fire district's WUI area, the builders risk underwriter asks about construction materials and fire access. These details are hypothetical, and a real program depends on the county's current requirements, the surety or carriers and the firm's own risk. ## Accepted Guarantee Forms and Reduction Caps The county's Subdivision Improvement Agreement form, updated in November 2023, lists the faithful performance guarantee forms it accepts: a bond, an irrevocable letter of credit, a certificate of deposit or a savings or money market account. The issuer must be a company or bank authorized to do business in Nevada. An extension is limited to one year and comes with a replacement guarantee. Reductions are possible at an extension or every 12 months, but they are capped twice. The maximum reduction equals 90% of the dollar value of completed work to date, and in no case may it exceed 75% of the total performance guarantee. On a $4,000,000 guarantee, at least $1,000,000 stays posted until the work is accepted, whatever share of the work is finished. Grading and paving carry their own security. The county's Land Development Review page lists separate Grading/Paving Faithful Performance Bond and Grading/Paving Letter of Credit forms, so a project may post more than one instrument. The amount for grading security should be confirmed with the county engineer for the specific permit. Bond capacity, collateral choices and indemnity for a developer are covered under [Nevada developer insurance and bonds](https://mycontractorsinsurancequote.com/nevada/audiences/developers). ## The One-Year Warranty and the Hold-Harmless Duty Under the agreement, the subdivider guarantees and warrants satisfactory completion of the improvements for one year from the county's acceptance. The form does not state a separate warranty security percentage, so whether the county wants a bond for that year should be confirmed with Washoe County when the agreement is drafted. The agreement also requires the subdivider to defend the county and hold it harmless. It does not set insurance limits, but the hold-harmless promise is a contractual liability the developer's general liability policy is typically asked to respond to, subject to its insured contract wording. A developer who passes the one-year warranty to the site contractor should match the subcontract language to the county agreement and keep completed-operations coverage running through the warranty year. How post-acceptance obligations are bonded and released is covered under [maintenance and warranty bonds](https://mycontractorsinsurancequote.com/construction-surety-bonds/maintenance-warranty-bonds). ## Encroachment and Excavation Permits in County Right-of-Way Work in county streets runs through an Encroachment/Excavation (E/E) Permit. The county's application, revised in April 2025, requires a $5,000 performance bond on a form approved by the Washoe County District Attorney and a permittee that is licensed, bonded and insured in Nevada. Work must begin within 15 days of issuance, and a permit is valid for no more than 30 calendar days. The insurance terms are specific. Liability coverage must show $1,000,000 combined single limit and $2,000,000 aggregate, Washoe County must be added as additional insured in the Description of Operations and endorsements are due before the permit issues. The excavation performance bond form, dated April 2015, is a continuing $5,000 bond under Washoe County Code Chapter 85. It reaches every guarantee period tied to the principal's permits, and the surety must give 90 days' written notice to cancel. A utility contractor that cancels or switches sureties should plan for that notice window. How Nevada right-of-way permit bonds typically work is covered under [Nevada encroachment permit bonds](https://mycontractorsinsurancequote.com/construction-surety-bonds/encroachment-permit-bonds/nevada). ## Flood History and the Wildland-Urban Interface Code The Truckee Meadows Flood Management Authority's Vista Narrows application, posted by the Nevada Division of Emergency Management, describes 100-year flood inundation as most extensive in the eastern Truckee Meadows, particularly in developed commercial and industrial areas. It notes that more than 2,500 properties were impacted by the 1997 flood, including almost 1,000 single-family homes, and that the National Weather Service initially estimated property damage at $700 million. Industrial and warehouse work in the east meadows can face flood questions from lenders and builders risk underwriters early. In the hills, the Truckee Meadows Fire Protection District enforces the 2024 International Fire Code and the 2024 International Wildland-Urban Interface Code with amendments as adopted by Washoe County. WUI construction requirements affect materials, defensible space and access. Builders risk underwriters often ask about wildfire exposure and fire department access on hillside subdivisions. Wildfire-exposed construction and its property terms are covered under [builders risk in wildfire zones](https://mycontractorsinsurancequote.com/builders-risk-insurance/wildfire-zone-rebuilds). ## Neighboring Counties and Cities in the Region Projects near the Washoe line can cross into other jurisdictions with different forms. Storey County, Lyon County and the City of Sparks each set their own improvement and permit rules, so a guarantee or certificate built for a Washoe County map should not be assumed to fit a neighboring agency. Program terms can vary by carrier guidelines and programs and are subject to underwriting and the terms of the bonds and policies issued. East of the meadows, compare [Storey County bond and permit requirements](https://mycontractorsinsurancequote.com/nevada/metros/reno/storey-county). ## Before You Ask for a Quote ### What to Gather - Faithful performance bond estimate prepared by a Nevada registered engineer - County Engineer's approved estimate with contingency - Executed Subdivision Improvement Agreement and the chosen guarantee form - Grading/Paving Faithful Performance Bond or Letter of Credit - E/E Permit application, $5,000 excavation bond and certificate with Washoe County as additional insured - Flood zone and WUI determinations for the site ### What to Ask the Insurer or Surety - Is the parcel in unincorporated Washoe County or inside Reno or Sparks? - How large a contingency will the County Engineer add to the estimate? - When can we request a reduction, and how do the 90% and 75% caps apply? - Does the county want separate security for the one-year warranty? - Does our general liability policy treat the agreement's hold-harmless as an insured contract? - Will builders risk underwriters ask for WUI or flood details before binding? ## Broker Notes **Quick Answer:** Unincorporated Washoe County sets improvement security at the County Engineer's estimate plus contingency (Ord. 1735, effective April 18, 2025), caps reductions at 90% of completed work and 75% of the guarantee and requires a one-year warranty from acceptance. **Common Mistake:** Expecting a guarantee to shrink in step with completed work. The 75% cap keeps at least a quarter of the guarantee posted until acceptance, which affects collateral and bond line planning. **Broker Perspective:** A broker prices the bond on the County Engineer's final number including contingency and plans the reduction schedule around the 12-month and extension windows in the agreement. **Coverage Impact:** The guarantee protects the county, and the developer owes the surety indemnity. The hold-harmless and one-year warranty fall on the developer's liability program, depending on its contract and completed-operations terms. ## Questions Buyers Ask ### How does Washoe County size a subdivision improvement guarantee? Washoe County Code section 110.610.40, as amended by Ordinance 1735 effective April 18, 2025, sets the guarantee at the cost of the improvements plus a contingency amount, in the County Engineer's opinion. There is no fixed percentage. ### How much can a Washoe County improvement guarantee be reduced before acceptance? The county's agreement allows reductions at an extension or every 12 months, up to 90% of the dollar value of completed work but never more than 75% of the total guarantee. ### How long is the warranty on Washoe County subdivision improvements? The Subdivision Improvement Agreement requires the subdivider to guarantee and warrant the improvements for one year from county acceptance. The form does not set a separate warranty security percentage, so confirm that with the county. ### What bond and insurance does a Washoe County excavation permit need? The Encroachment/Excavation Permit requires a $5,000 performance bond on a District Attorney-approved form and liability limits of $1,000,000 combined single limit and $2,000,000 aggregate, with Washoe County named as additional insured. ### Do Washoe County improvement rules apply in Reno or Sparks? No. The county code and agreement govern unincorporated areas. Reno and Sparks each use their own improvement agreements, permit forms and insurance terms. ## Official Sources 1. [Washoe County Development Code, Division Six, section 110.610.40 Guarantee of Completion (amended by Ord. 1735, effective April 18, 2025)](https://www.washoecounty.gov/csd/planning_and_development/code_enforcement/files_forms_reports_manuals/dev_code/_Cdc600_annotated.pdf), Washoe County Planning and Building. Bond, financial assurance document or other guarantee equal to the County Engineer's cost estimate plus a contingency; may be used to make the site safe. Verified 2026-10-26. 2. [WDCA24-0007 ordinance (Board of County Commissioners, March 18, 2025)](https://washoecounty.gov/bcc/files/ordinance%20files/2024/BCC-3-18-25-WDCA24-0007-Ordinance.pdf), Washoe County Board of County Commissioners. Effective date of April 18, 2025; faithful performance bond estimate prepared by a Nevada registered engineer with the preliminary submittal. Verified 2026-10-26. 3. [Subdivision Improvement Agreement (November 2023)](https://www.washoecounty.gov/csd/engineering_capitalprojects/development_services/development_review_forms/wc_subdivision_improvement_agreement.pdf), Washoe County CSD, Engineering and Capital Projects. Accepted guarantee forms; Nevada-authorized issuer; one-year extensions with replacement guarantee; reductions up to 90% of completed work and no more than 75% of the guarantee; one-year warranty from acceptance; defend and hold harmless. Verified 2026-10-26. 4. [Encroachment/Excavation Permit Application (April 2025)](https://www.washoecounty.gov/csd/engineering_capitalprojects/development_services/development_review_forms/wc_encroachment_excavation_permit_application.pdf), Washoe County CSD, Engineering and Capital Projects. $5,000 performance bond on a District Attorney-approved form; $1,000,000 combined single limit and $2,000,000 aggregate; Washoe County additional insured; endorsements before issuance; Nevada licensed, bonded and insured permittee; start within 15 days and 30-day maximum permit life. Verified 2026-10-26. 5. [Excavation Performance Bond (4/2015)](https://www.washoecounty.gov/csd/engineering_capitalprojects/development_services/development_review_forms/wc_excavation_performance_bond.pdf), Washoe County CSD, Engineering and Capital Projects. Continuing $5,000 bond under WCC Chapter 85 covering all guarantee periods; 90-day written notice of cancellation. Verified 2026-10-26. 6. [Land Development Review](https://www.washoecounty.gov/csd/engineering_capitalprojects/development_services/land-development-review.php), Washoe County CSD. Separate Grading/Paving Faithful Performance Bond and Grading/Paving Letter of Credit forms. Verified 2026-10-26. 7. [TRFMA Vista Narrows FEMA subapplication](https://www.oem.nv.gov/siteassets/oem.nv.gov/public-meetings/public-meetings-2026/nhmwg/c_national-comp._trfma_vista-narrows_subapplication_fema-go.pdf), Truckee River Flood Management Authority (posted by Nevada Division of Emergency Management). 100-year inundation most extensive in eastern Truckee Meadows commercial and industrial areas; more than 2,500 properties and almost 1,000 single-family homes impacted in 1997; $700 million initial damage estimate. Verified 2026-10-26. 8. [Fire Code](https://tmfpd.us/fire-code/), Truckee Meadows Fire Protection District. District enforces the 2024 International Fire Code and 2024 International Wildland-Urban Interface Code with amendments as adopted by Washoe County. Verified 2026-10-26. 9. [Community-Wide GHG Emissions Forecast](https://www.washoecounty.gov/sustainability/Climate-Action-Planning/community-ghg-inventory/community-wide-GHG-emissions-forecast.php), Washoe County Sustainability. TMRPA 2024 Regional Plan consensus forecast: population 520,826 (2025) to 606,009 (2045); employment 328,215 to 378,794. Verified 2026-10-26. 10. [NRS Chapter 278, section 278.380](https://www.leg.state.nv.us/NRS/NRS-278.html), Nevada Legislature, Legislative Counsel Bureau. A governing body may require an improvement agreement to be secured by a good and sufficient bond or other security in the amount it determines. Verified 2026-10-26. ## Related Decisions - [Sparks subdivision surety and sewer rules](https://mycontractorsinsurancequote.com/nevada/metros/reno/sparks) - [Lyon County bond and permit requirements](https://mycontractorsinsurancequote.com/nevada/metros/reno/lyon-county) - [Nevada civil and infrastructure contractor insurance](https://mycontractorsinsurancequote.com/nevada/audiences/civil-infrastructure-contractors) - [underground utility contractor insurance](https://mycontractorsinsurancequote.com/who-we-serve/civil-underground-utilities/underground-utility-contractors) - [builders risk for residential subdivisions](https://mycontractorsinsurancequote.com/builders-risk-insurance/residential-subdivisions) --- Start a quote request: https://mycontractorsinsurancequote.com/get-a-quote · Call 844-978-7283 Contract and insurance reviews are a courtesy service that may be available at times, depending on our workload and on the size, timing and complexity of the project. 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