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 Arkansas
Ark. Code § 27-67-218 makes it unlawful to dig up or disturb a state highway except as authorized by the State Highway Commission. ARDOT uses a bond to guarantee satisfactory restoration of the highway right of way, payable to the State of Arkansas, for permit holders working in state highway right of way.
- The bond covers permits ARDOT issues after its effective date, and pays ARDOT the cost of restoring the highway if the permit holder does not.
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.