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Permit bond

Iowa Right-of-Way Bond

Iowa DOT may require a performance bond for utility work in primary road right of way under 761 IAC 115.3(4), with a minimum of $10,000 per permit or a $100,000 annual statewide bond. A performance bond of at least $100,000 per permit is always required for longitudinal utility occupancy of freeway right of way (761 IAC 115.15(9)).

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Bond at a glance
Iowa Right-of-Way BondPermit bond
Required by state law
Law761 IAC 115.3(4) and 115.15(9)
AmountAt least $10,000 per permit, or $100,000 annual statewide bond; at least $100,000 per permit for freeway occupancy
When requiredRelocation for a planned primary road project, unusual installations, abnormal site conditions, a history of performance problems, or longitudinal freeway occupancy
ObligeeIowa Department of Transportation
Claim periodTwo years after the bond is released
Required byIowa Department of Transportation for primary roads; 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 Iowa

Iowa DOT may require a performance bond for utility work in primary road right of way under 761 IAC 115.3(4), with a minimum of $10,000 per permit or a $100,000 annual statewide bond. A performance bond of at least $100,000 per permit is always required for longitudinal utility occupancy of freeway right of way (761 IAC 115.15(9)).

  • The bond guarantees prompt relocation for road projects, restoration of damage, and correction of work not done as the permit requires.

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 Iowa?

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 bondCalifornia 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 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. 761 IAC chapter 115, Utility accommodation (Iowa Legislature)

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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