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 Indiana
INDOT requires a performance bond with each application for a commercial driveway permit on a state highway under 105 IAC 7-1-14. The minimum is $5,000, raised to the estimated cost of the work on INDOT right-of-way.
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.