New York Highway Permit Performance Bond
What is a New York Highway Permit Performance Bond?
This is a financial guarantee required by the New York Department of Transportation to ensure that the contractor will perform the work in a timely and workmanlike manner. This bond is required of the following persons:
- Those who have submitted plans and specifications for work within a State highway
- Those who have received or will apply for a permit for the purpose of constructing or maintaining the following:
- o Drive entrances
o Sewer lines
o Water mains
o Gas mains
o Utility lines and poles
o Street intersections
o Excavating for miscellaneous structures on or within the right of way of highways under the jurisdiction of the New York Department of Transportation
How much does a New York Highway Permit Performance Bond cost?
The bond premium, just like the bond amount, will vary per applicant. The bond premium will depend on the applicant’s credit score and the bond amount. The bond amount will be determined by the New York Department of Transportation.
Applicants who have excellent credit scores will be eligible to pay as low as 1% of the bond amount.
Want to get a tailored quote ASAP? Get your FREE SURETY BOND QUOTE HERE!
How can I get a New York Highway Permit Performance Bond?
We’ve made the process easier so that you can get your license and perform the work faster. Just follow these simple steps on how to get this bond below:
- APPLY FOR THIS BOND HERE!
- Your application will immediately be processed. We will contact you if we need further information or documents for the prequalification process. The following will be checked during the prequalification process:
- Your financial capability
- Your business or job performance history
- Your credit score
- Your surety bond will be issued and sent to you after the indemnity agreement is signed.
How does a New York Highway Permit Performance Bond work?
This bond has three parties:
Principal – person who is asked to obtain the bond
Obligee – New York Department of Transportation
Surety – surety bond provider
The principal is the party required to perform all the pre-determined conditions stated in the bond. The Obligee is the party who is requiring the bond. The role of the surety is to assure the obligee that the principal is capable of fulfilling the obligations. The surety will also provide a financial security by backing this bond in case the principal violates the obligations. When a claim is made against the bond, the surety will evaluate the claim by identifying the ordinance, rules, regulation, and laws that governs it.
The surety is required to ensure that the obligee will be paid if the claim is valid. After the payment has been settled by the surety, the principal will be asked to reimburse the said payment.
Ready to apply for a Highway Permit Performance Bond? START HERE!