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 North Carolina
NCDOT may require performance and indemnity bonds from applicants for encroachment agreements to work within highway rights of way. The bond covers damage to the right of way caused by the work.
- Accepted forms: corporate surety bond, continuing indemnity bond, certified or cashier's check.
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.