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 South Dakota
SDDOT's utility permit rules for state highway right of way (ARSD 70:04:05) require the permittee to indemnify the department but do not require a bond. Cities set their own right-of-way bonds; for example, Sioux Falls requires right-of-way bonds filed with the City Engineer before a permit is issued, under § 96.241 of its city code.
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.