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Permit bond

Alabama Right-of-Way Bond

The Alabama Department of Transportation requires permits for work on state highway right-of-way and uses bond forms for permit work, including Form BM-175, a highway occupancy permit blanket bond.

Bond at a glance
Alabama Right-of-Way BondPermit bond
Required by state law
ObligeeAlabama Department of Transportation (ALDOT)
FormsBM-174 Bond for Performance of Work; BM-175 Highway Occupancy Permit Blanket Bond
Issued byALDOT district offices
Required byAlabama Department of Transportation (ALDOT); counties and cities for local roads
How it works

Three steps to your bond.

  1. 01Apply onceTell us about your business and what the bond is for. One application covers most contractor bonds.
  2. 02The surety reviews itPropeller Bonds, our surety partner, reviews your application and sets the terms. We show you the terms before you commit.
  3. 03Sign and fileSign the bond and file it with whoever requires it: the project owner, agency or court. We help with the filing.
About this bond

What a right-of-way bond is

Work in a public street, sidewalk or highway usually needs an encroachment or right-of-way permit, and many agencies require a bond with it. The bond guarantees you'll follow the permit conditions and restore the right of way when you're done.

In Alabama

The Alabama Department of Transportation requires permits for work on state highway right-of-way and uses bond forms for permit work, including Form BM-175, a highway occupancy permit blanket bond.

  • Bond amounts were not confirmed from an official source.

You need this bond if you're

  • Utility, fiber and telecom contractors
  • Contractors cutting curbs or building driveways
  • Sewer and water lateral contractors
  • Anyone placing equipment or materials in a public street

What the surety looks at

Basic business details and credit. Large or long-term permits can need more.

FAQs

Common questions.

Who requires a right-of-way bond in Alabama?

The agency that owns the road: the state transportation department for state highways, and the city or county for local streets. See the facts above.

Can one bond cover many permits?

Some agencies accept a blanket or annual bond that covers all your permits for the year. Ask the agency.

What does it cost?

You pay a premium, not the bond amount. The surety sets the premium after it reviews your application, usually as a percentage of the bond amount. We show you the terms before you commit.

How do I get one through BLDAssure?

Apply once with us. We collect the details the surety needs, Propeller Bonds (our surety partner) reviews the application and issues the bond, and we help you file it with whoever requires it.

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Permit bond

Alabama Permit Bond

Some cities and counties require a bond before they issue a building or work permit.

Development bond

Alabama Subdivision Bond

Cities and counties often require a developer to bond the public improvements in a new subdivision or site plan, like streets, sidewalks, storm drains, sewer and water lines, before they approve the final map or permits.

License bond

Alabama Contractor License Bond

Some states, and many cities and counties, make contractors post a bond to get or renew a license.

Sources

  1. ALDOT Form BM-175
  2. Navigating Alabama's Highway Right of Way Permit Bond (Axcess Surety)

General information, not legal advice. Rules change; confirm the current requirement with the agency or owner that asks for the bond. Facts checked Oct 23, 2026.

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