Right of Way
Right-of-Way Bond
A right-of-way bond guarantees that a contractor or utility doing work in a public road or right-of-way will follow the permit and repair any damage.
- Required by
- State DOTs (ALDOT highway occupancy permits) and cities or counties
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state transportation department or local government that issues the permit. It promises the work will meet the agency's standards, that the agency is held harmless from claims, and that damage to the road will be restored. If not, the agency claims on the bond for its costs.
Who needs it
- Utility contractors installing lines in roads
- Developers building driveways or connections to state roads
- Contractors cutting curbs, sidewalks, or pavement
What the underwriter looks at
- Scope and number of permits
- Contractor experience and credit
- Prior permit violations
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Can one bond cover many permits?
Often yes. ALDOT's Form BM-175 is a blanket highway occupancy permit bond that can be written district wide, area wide, region wide, or state wide, and must be renewed each year.
Who sets the amount?
The permitting agency sets the penal sum, usually based on the scope of work. Ask the permit office before applying.