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 Virginia
VDOT requires surety for land use permits to work in state highway right of way. The amount depends on the type of permit and the cost of the work.
- Districtwide logging entrance permits need $10,000 continuous surety per district.
- Facilities placed in the right of way need continuous surety large enough to restore the right of way.
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.