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Permit bond

California Right-of-Way Bond

Caltrans may require surety bonds for encroachment permits in the State highway right-of-way. Its Encroachment Permits Manual calls for at least 50 percent performance and 100 percent payment bonds on public works encroachments of $5,000 or more.

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Bond at a glance
California Right-of-Way BondPermit bond
Required by state law
RuleCaltrans Encroachment Permits Manual, Section 203.4 Surety Bonds
Performance bondAt least 50 percent of estimated cost of work in the right-of-way
Payment bond100 percent of estimated cost of work in the right-of-way
ThresholdPublic works encroachments costing $5,000 or more
ObligeeState of California (Caltrans) as sole obligee
Required byCalifornia Department of Transportation (Caltrans); cities and counties for local streets
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 California

Caltrans may require surety bonds for encroachment permits in the State highway right-of-way. Its Encroachment Permits Manual calls for at least 50 percent performance and 100 percent payment bonds on public works encroachments of $5,000 or more.

  • Utility work and private residential improvements usually do not require bonding unless past performance was poor.
  • Letters of credit and property bonds are not accepted.

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 California?

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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By state

Right-of-way & encroachment bonds in other states.

Alabama right-of-way bondAlaska right-of-way bondArizona right-of-way bondArkansas right-of-way bondColorado right-of-way bondConnecticut right-of-way bondDelaware right-of-way bondDistrict of Columbia right-of-way bondFlorida right-of-way bondGeorgia right-of-way bondHawaii right-of-way bondIdaho right-of-way bondIllinois right-of-way bondIndiana right-of-way bondIowa right-of-way bondKansas right-of-way bondKentucky right-of-way bondLouisiana right-of-way bondMaine right-of-way bondMaryland right-of-way bondMassachusetts right-of-way bondMichigan right-of-way bondMinnesota right-of-way bondMississippi right-of-way bondMissouri right-of-way bondMontana right-of-way bondNebraska right-of-way bondNevada right-of-way bondNew Hampshire right-of-way bondNew Jersey right-of-way bondNew Mexico right-of-way bondNew York right-of-way bondNorth Carolina right-of-way bondNorth Dakota right-of-way bondOhio right-of-way bondOklahoma right-of-way bondOregon right-of-way bondPennsylvania right-of-way bondRhode Island right-of-way bondSouth Carolina right-of-way bondSouth Dakota right-of-way bondTennessee right-of-way bondTexas right-of-way bondUtah right-of-way bondVermont right-of-way bondVirginia right-of-way bondWashington right-of-way bondWest Virginia right-of-way bondWisconsin right-of-way bondWyoming right-of-way bond

Sources

  1. Caltrans Encroachment Permits Manual, Chapter 200

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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