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Permit bond

Kentucky Right-of-Way Bond

The Kentucky Transportation Cabinet requires an encroachment permit bond for work in state highway right-of-way. The permittee gives a performance bond under the Department of Highways Permits Manual, and a payment bond may be required at the department's discretion.

Bond at a glance
Kentucky Right-of-Way BondPermit bond
Required by state law
RuleKentucky Transportation Cabinet Permits Manual, Section PE-203
FormTC 99-7 Encroachment Permit Bond
ObligeeKentucky Transportation Cabinet, Department of Highways
Required byKentucky Transportation Cabinet, Department of Highways; 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 Kentucky

The Kentucky Transportation Cabinet requires an encroachment permit bond for work in state highway right-of-way. The permittee gives a performance bond under the Department of Highways Permits Manual, and a payment bond may be required at the department's discretion.

  • The bond amount is set under the Permits Manual and was not confirmed here.

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 Kentucky?

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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Kentucky Contractor License Bond

Some states, and many cities and counties, make contractors post a bond to get or renew a license.

Sources

  1. Kentucky Transportation Cabinet Form TC 99-7 Encroachment Permit Bond

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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