Overview of Right of Way Bond Requirements
The right of way bond, also known as a ROW bond, is a specific type of bond for contractors who work on the public ‘right-of-way’.
Right-of-way extends a number of feet from the curb towards property, and it is that section that certain contractors may have work to perform on. Work performed on the right-of-way may include installing or repairing utilities, signals,sewers, sidewalks, streetlights and more.
Typically, the right-of-way bond is required of contractors or developers who connect their development to a public road and must be posted prior to beginning work. Often such a bond is also required in order to obtain a right-of-way permit, before work can commence.
The bond guarantees that bonded contractors will comply with their permit or license conditions and perform according to contract. Its function is to secure protection for the public and the state, county or city in cases when contractors or developers do not comply with regulations, and cause damages or losses. In such cases, a claim can be filed against the bond, and the surety may compensate claimants up to the full penal sum of the bond.
Some states, such as Indiana and Louisiana require right of way bonds on state level, whereas in other states such bonds are required on a county and city level.
Below is a list of some of the many places in the U.S. that require such a bond, though the list is not exhaustive.
| Locations requiring a right of way bond | |
|---|---|
| Colorado | Grand County, City of Wheat Ridge, City of Brighton, City of Northglenn |
| Florida | Pasco County, County of Pinellas, Lee County, City of Jacksonville |
| Iowa | City of Cedar Rapids |
| Maryland | Montgomery County |
| Michigan | City of Kentwood |
| Minnesota | City of Golden Valley |
| Missouri | City of Liberty, City of Grandview |
| North Carolina | City of Raleigh |
| Oregon | City of Portland |
| Texas | City of Austin, City of San Antonio |
| Virginia | City of Newport News, City of Norfolk, City of Roanoke |
| Washington | Snohomish County, City of Takoma, City of Seatac, City of Olympia |
Furthermore, there are statewide requirements in Indiana and Louisiana. Always check with your local authority prior to applying to get bonded as bonding requirements are subject to change.
Need more information about surety bonds? See our detailed ‘What is a surety bond’ guide for answers to all your surety bond related questions!
Continue reading for more information about the cost of your bond, getting bonded with bad credit, and how to apply for your bond.
If you have any questions about these bonds, call us at 866.450.3412! Our agents will discuss the bonding requirements with you.
Right of Way Bond Cost
The cost of your bond is a small percentage of the total amount of the bond, requested by your licensing authority. The bond amount may differ greatly between different states, though generally ROW bonds are somewhere between $5,000 and $30,000.
The amount of your bond may also depend on the type of permit you are applying for. Some places, such as the City of Liberty, Missouri, have a $5,000 permit specific bond, and a $50,000 annual bond, allowing permit holders to do any type of such work during that year. Other examples of bond amounts are: $15,000 in the City of Tacoma, WA; $10,000 in the City of Cedar Rapids, IA; $5,000 - $10,000 in the City of Austin, TX, and so forth.
The cost of your bond is a fraction of the total amount, and that fraction is determined by sureties when you apply for your bond. Sureties look at your personal credit score, as well as certain other financial indicators, to determine the quote they can offer you. The higher your score, the lower the rate you will be offered by the surety - typically 1% - 3% for high credit applicants.
Wonder how much your bond will cost? Get a free quote on your bond by submitting a bond application form. There are no obligations attached to requesting a quote.
Getting Bonded With Bad Credit
If you want to obtain a bond, yet have a low credit score, you don’t need to worry!
Our Bad Credit Program is specifically designed to make bonds available to such applicants. Rates under the program are slightly higher than for higher credit score applicants, though it is our policy to always strive to find the best possible rates for our clients. As all our bonds, those issued under this program are also provided by some of the best sureties in the country.
Want to know more about getting bonded with bad credit? See the program page for more information and instructions on getting a quote!
Get Bonded Today!
Ready to get your bond? Complete and submit the application form and we will shortly contact you with your free bond quote. You will also find further information on completing your application in the email.
It takes two working days for your bond to be issued after which we will send it to you via standard mail as well as via email.
Need more information about the bonding requirements in your city or county? Call us at 866.450.3412 to check with our surety bond agents!
