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 Louisiana
The Louisiana Department of Transportation and Development (DOTD) may require a bond or cash guarantee deposit for work in state highway right-of-way, including access connection permits. The amount is set by DOTD to cover the work or restoration.
- Only the DOTD headquarters permit engineer may require a guarantee deposit on utility permits.
- Municipal and parish owned utilities are normally not required to post one.
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.