Key points
- Agencies call it different names: a right-of-way, encroachment, street opening, excavation or road permit bond.
- Whoever owns the road asks for it: the state for state highways, the city or county for local streets. They set the amount.
- Most right-of-way and road permit bonds we list cost $100 and are issued instantly once you pay, with no credit check (Propeller's rate sheet, checked Nov 5, 2026).
- Some agencies take a blanket bond that covers every permit you pull with them.
What a right-of-way bond is
Streets, sidewalks and highways belong to the public. Before you cut a curb, trench for a utility line, build a driveway approach or put equipment in the road, the agency that owns it usually requires a permit, and many require a bond with the permit.
The bond is a promise from a surety company to the agency. If you don't follow the permit's conditions or don't restore the road, the agency can claim on the bond to pay for the work, up to the bond amount, and you repay the surety. It protects the public, not you.
Who needs one
- Utility, fiber and telecom contractors
- Contractors cutting curbs or building driveway approaches
- Sewer and water connection contractors
- Anyone placing equipment or materials in a public street
Who asks for it: three examples
- California counties: Streets and Highways Code § 1467 lets a county require a bond from anyone applying for an encroachment permit. Fresno County's encroachment permit bond is $6,000.
- Ohio: the director of transportation grants permits to use or occupy part of a state highway (Ohio Rev. Code § 5515.01), and cities, villages and counties set their own bonds for local streets. See Ohio right-of-way bonds.
- Tacoma, Washington: the city says two bonds may be required for work in its right of way, a right-of-way bond and a performance bond. See the Tacoma right-of-way permit bond.
Some road bonds cover what you drive, not where you dig. Texas requires a $15,000 bond (or an irrevocable letter of credit) on file with TxDMV before it issues an annual over axle/over gross weight tolerance permit: the Texas over axle permit bond.
What it costs
You pay a premium, not the bond amount. Most right-of-way and road permit bonds we list cost $100 (Propeller's rate sheet, checked Nov 5, 2026). For many, the premium is 1% of the bond amount with a $100 minimum, so a $15,000 bond costs $150. Each bond's page shows its exact price.
How to get one
- Get the permit application from the agency, and note the bond amount and the bond form it asks for.
- Find the bond on your state's bond page, by city or county.
- Apply online and pay. Most right-of-way bonds we list are issued instantly.
- Sign the bond and file it with your permit application.
- Keep it in force until the agency accepts the finished work. Fresno County's, for example, stays in effect until the county inspects and accepts the work.
Common questions
What is a right-of-way bond?
A surety bond an agency asks for before it lets you work in a public street, sidewalk or highway. It guarantees you'll follow the permit and restore the road; if you don't, the agency can claim on the bond to pay for the repairs.
Is an encroachment permit bond the same as a right-of-way bond?
Usually, yes: agencies use different names for the bond that comes with a permit to work in a public road. Use the exact bond name and amount on the agency's permit application.
How much does a right-of-way bond cost?
Most right-of-way and road permit bonds we list cost $100. For many, the premium is 1% of the bond amount with a $100 minimum.
How fast can I get a right-of-way bond?
Most of the ones we list are issued instantly once you pay, with no credit check. Each bond's page says whether it is. The agency still has to issue your permit before you start work.
Can one bond cover all my permits?
Some agencies accept a blanket bond that covers every permit you pull with them for a period; Propeller lists blanket right-of-way bonds for Blue Ash, Ohio and Grandview, Missouri, for example. Ask the permit office whether it accepts one.
Sources
- Streets and Highways Code § 1467 (California Legislative Information)
- Ohio Revised Code § 5515.01 (Ohio Legislative Service Commission)
- Right of Way Permits (City of Tacoma)
- Annual Over Axle/Over Gross Weight Tolerance Permits (Texas Department of Motor Vehicles)
This guide is general information, not legal advice. Rules change; confirm current requirements with the agency that issues the license or permit. Last reviewed Nov 12, 2026.