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 Georgia
The Georgia Department of Transportation requires a performance bond or letter of escrow for driveway and encroachment permits on state highways. The amount is based on the Department's estimated construction cost for the work, and blanket bonds are accepted. Cities and counties set their own rules for local streets.
- The bond is used to correct or remove unfinished or unauthorized work and to cover damage caused by the permitted work.
- A surety outside Georgia needs a Georgia resident agent to countersign the bond.
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.