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 Minnesota
Under Minn. R. 7819.3000, a Minnesota local government can require a right-of-way user that restores its own excavation to post a construction performance bond. The bond covers the estimated cost of restoring the right-of-way, and the surety is released 24 months after proper restoration.
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.