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 Nevada
Nevada Administrative Code § 408.437 authorizes NDOT district engineers to require a performance or cash bond equal to 110% of their cost estimate before issuing an occupancy permit for work on a state highway right-of-way. For telecommunications facilities on state highway ROW, NAC § 408.4404 separately authorizes NDOT to require a surety bond of $100,000 up to $2,000,000 based on facility length and risk. The underlying permit requirement is set by NRS § 408.423, which prohibits any disturbance or encroachment on a state highway without the Director's written permit.
- The bond under NAC § 408.437 is discretionary—the district engineer 'may require' it based on the Department's prior experience with the permittee, risk of disruption to highway maintenance, and hazard potential.
- The telecom bond under NAC § 408.4404 is also discretionary and is conditioned on the same three factors.
- NRS § 408.423 itself does not specify a bond; bond conditions are imposed through the administrative regulations and permit terms issued by the Director.
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.