It shall be unlawful for any owner or contractor, including his or her agents, servants, independent contractors, or employees, to occupy or obstruct any portion of the right-of-way or streets or to perform any construction activity, or to cause another to do the same, for any purpose, in, over, under, through, along or across any street or right-of-way, without first having made all applications for permits and, when required, obtained all permits therefor, together with a bond approved by the building inspector in an amount determined as herein provided, conditioned that the principal therein will discharge all claims of every character arising from or occasioned by such occupancy or construction activity or by reason of damages or injuries sustained by persons or property because of such occupancy, construction activity, excavation or other such activity thereon and discharge all judgments obtained, together with all costs attached thereto, against the city by reason of any such claim, injury or damage sustained. A contractor and owner carrying on any construction activity or excavation shall keep all streets and rights-of-way adjacent to such construction activity or excavation carried on by such contractor or owner in a clean, safe and orderly condition, and unobstructed, except as provided in this division, during all such activities, and shall restore all such streets, rights-of-way, facilities and other structures damaged, altered or injured, in any way, to as good condition as they were before the beginning of such activities. The owner or contractor may, in lieu of providing a separate bond on each permit or construction project, annually file with the city a bond providing the above-required coverage to the city, which bond shall be and remain in effect for a term of one year and applicable to all work performed by the owner or contractor within the city.