What is a right of way bond?
A right of way bond is a license and permit bond that guarantees work performance in a public right of way. If you’re a contractor that needs to work in a public right of way, you may need this bond to obtain the proper permit.
Specific requirements may vary based on your municipality. The bond ensures you follow all the rules and regulations in your location for your specific construction project.
What is a public right of way?
A public right of way is an easement (a right to cross or use the land for a specific purpose) that adjoining landowners agree upon. When a right of way is established, the public can legally cross the property to reach their desired location. Rights of way can create more convenient access points.
In general, a city or county grants the public permission to use the right of way, which may be located on an individual owner’s property. Examples of rights of way often include sidewalks, parking strips (the area between sidewalks and streets), and medians.
Get Your Right of Way Bond:
- If you’re a contractor that needs to work in a public right of way, you may need this bond to obtain the proper permit.
- A public right of way is an easement that adjoining landowners agree upon.
- Construction contractors in many states must post a right of way bond before they’re permitted to begin work on projects that involve public rights of way, such as roads, highways, and streets.
How does a right of way bond work?
Right of way (ROW) bonds are contracts involving three parties: a principal, an obligee, and a surety.
- Principal: The business that needs the bond
- Obligee: The governing authority that requires a business to post the bond
- Surety: The company that issues the business a bond
Who needs a right of way surety bond?
Construction contractors in many states must post a right of way bond before they’re permitted to begin work on projects that involve public rights of way, such as roads, highways, and streets. Projects may include grading, excavation, encroachment, maintenance, and other roadway-related projects. Check with your municipality to learn the exact requirements for your location.
The cost of your right of way bond will depend on the bond amount you need to post. You will pay a small percentage of the total amount as your bond premium.
The rate you pay will depend on factors like your credit score and business credentials. If you have excellent credit, you could pay as low as 1% of the bond. For example, you might only pay $200 for a $20,000 bond.
Follow this general process to get your bond and right of way permit for your next project.
- Apply for your permit by submitting an application and description of the work you plan to complete.
- Apply for a right of way bond with ZipBonds.
- Obtain the applicable contractor’s license.
- Post your bond.
- Ensure you’ve fulfilled all requirements to obtain your permit by confirming with the obligee.
Get Your ROW (Right of Way) Bond
ZipBonds is the fastest and most secure way to get the bond you need. We take out the pain of long, complicated applications. Most of our bonds are approved and processed immediately. Get your ROW bond today by applying below – or call us directly, and we’d be glad to walk you through the process.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.