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Permit bond

Virginia Right-of-Way Bond

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.

Bond at a glance
Virginia Right-of-Way BondPermit bond
Required by state law
Rule24VAC30-151-720
Single use permitBased on the estimated cost of work in the right of way
Districtwide utility permit$10,000 continuous surety per county
ObligeeVirginia Department of Transportation (VDOT)
Required byVirginia Department of Transportation (VDOT)
How it works

Three steps to your bond.

  1. 01Apply onceTell us about your business and what the bond is for. One application covers most contractor bonds.
  2. 02The surety reviews itPropeller Bonds, our surety partner, reviews your application and sets the terms. We show you the terms before you commit.
  3. 03Sign and fileSign the bond and file it with whoever requires it: the project owner, agency or court. We help with the filing.
About this bond

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.

FAQs

Common questions.

Who requires a right-of-way bond in Virginia?

The agency that owns the road: the state transportation department for state highways, and the city or county for local streets. See the facts above.

Can one bond cover many permits?

Some agencies accept a blanket or annual bond that covers all your permits for the year. Ask the agency.

What does it cost?

You pay a premium, not the bond amount. The surety sets the premium after it reviews your application, usually as a percentage of the bond amount. We show you the terms before you commit.

How do I get one through BLDAssure?

Apply once with us. We collect the details the surety needs, Propeller Bonds (our surety partner) reviews the application and issues the bond, and we help you file it with whoever requires it.

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Cities and counties often require a developer to bond the public improvements in a new subdivision or site plan, like streets, sidewalks, storm drains, sewer and water lines, before they approve the final map or permits.

License bond

Virginia Contractor License Bond

Some states, and many cities and counties, make contractors post a bond to get or renew a license.

Sources

  1. 24VAC30-151-720, Surety

General information, not legal advice. Rules change; confirm the current requirement with the agency or owner that asks for the bond. Facts checked Oct 23, 2026.

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