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 Utah
UDOT requires an encroachment permit for work in state highway right of way, and applicants must provide a performance and warranty bond.
- UDOT may require more than the minimum amount based on the risk of the work.
- Utility owners under a Statewide Utility License Agreement post a continuous bond of $100,000, unless exempt or a lesser amount is approved.
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.