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Indemnification agreements

An indemnification agreement authorizes a contractor working on behalf of a homeowner to excavate, break or reconstruct all or any portion of a street, and:

  • Protects The City from potential lawsuits that could arise from construction on City property.
  • Ensures that construction on City property complies with City standards.
  • Requires the person or company who enters into the agreement to maintain the construction for two years.

If you want to enter into an indemnification agreement, you will need to provide The City with two copies of clear, concise and accurate drawings that show the scope of construction. If the work is a requirement of a development permit, include the development permit number and the City stamped approved development permit drawings. The City will use the drawings to prepare the agreement, which will take up to six weeks to complete. Once completed, a copy will be sent to you. Sign the copies and return them with a security deposit, proof of insurance coverage and payment for an administration and inspection fee.

It is illegal to excavate, break, or reconstruct anything on any portion of a street, including boulevards and sidewalks, without authorization in writing from the Director of the Roads business unit. This written authorization is in the form of an indemnification agreement.

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Get permission to do construction on City Roads assets by applying for an Indemnification Agreement online through ePermits.

Security deposit

A security deposit such as cash, a certified cheque or a letter of credit is required in order for The City to correct the work if the construction doesn't meet City standards. The amount of the deposit is based on the scope of construction and The City's unit rates for construction work.

When a City inspector approves the original construction, The City will reduce the security deposit by 50 per cent. When The City approves the construction after the two-year maintenance period, The City will return the balance of your deposit. It is important to note, The City does not pay interest on deposits.

Insurance coverage

Unless you have a standing certificate of insurance with The City, you will need to provide The City with certified copies of an insurance policy that covers construction and a two-year maintenance period.

Administration and inspection fee

The administration and inspection fee covers The City's costs for administrating the agreement, inspecting the construction, testing the construction material and, if required, surveying the grades for construction.


If you are constructing a lane, replacing curb and gutter or performing any other work that could affect the grades of the roadway, The City will conduct a survey and provide grades for the construction.

Excavation permit

After the indemnification agreement has been signed by you and approved by The City, you will need an excavation permit to begin construction.

Related documents

Sample of The City's indemnification agreement Note: This document is a sample and is not meant for submission

List of Roads Master Indemnified Contractors