Construction Surety Bond
Right of Way / Highway / Encroachment Bonds
Getting this surety bond is easy! Let us help you get bonded.
When construction or utility work takes place in a public roadway, city street, or highway right of way, public agencies want assurance that the work will be completed safely, properly, and without leaving damage behind. That’s exactly what a Right of Way Bond (also called a Highway Bond or Encroachment Bond) provides.
A Right of Way Bond guarantees that a contractor or permit holder will restore the roadway, sidewalk, or other public property to its original condition after finishing their project. It also ensures compliance with all applicable state and municipal regulations. If obligations are not met, the bond provides financial protection to the public entity that issued the permit.
Need help getting approved today? Contact us and our team will guide you through the process.
Why Public Entities Require Right of Way Bonds
Anytime private contractors or utility companies disturb a public roadway, there’s risk involved. Municipalities, counties, and state transportation departments require Right of Way Bonds because they:
- Protect public infrastructure – Ensures that streets, sidewalks, landscaping, and utilities are restored.
- Guarantee compliance – Hold contractors accountable to city ordinances, permits, and safety codes.
- Provide financial security – Cover the cost of repairs if a contractor fails to meet obligations.
Without these bonds, taxpayers would be left paying the bill for damage or incomplete work.
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Who Needs a Right of Way / Highway / Encroachment Bond?
These bonds are commonly required for:
- Utility contractors installing or repairing water, sewer, gas, or electrical lines.
- Telecommunications companies laying fiber optic cable.
- Builders or developers connecting new construction to existing roads.
- Contractors working on sidewalks, curbs, gutters, or driveways intersecting public streets.
- Any company performing excavation, boring, or trenching in a public right of way.
If you’re applying for a permit from your city or transportation agency, chances are you’ll need one of these bonds.
Types of Right of Way Bonds
One of the key details in Right of Way Bonds is whether the coverage applies to a single project or to multiple permits, and whether it continues automatically or has a defined expiration. The six main variations are:
1. Continuous Blanket Bond
- Covers all projects and permits a contractor undertakes in a jurisdiction.
- Remains in effect continuously until canceled by the surety.
- Convenient for companies with ongoing or frequent right of way work.
2. Definite Blanket Bond
- Also covers multiple projects, but only for a fixed term (for example, one year).
- Must be renewed if work continues beyond the stated expiration.
3. Term Blanket Bond
- Similar to a definite blanket, but specifically tied to the term defined by the municipality.
- Offers flexibility for agencies that require bonds to align with permit cycles.
4. Single Job Continuous Bond
- Applies to one specific project, but remains valid until the work is properly completed or the roadway is restored.
- Protects the obligee in cases where projects extend beyond expected timelines.
5. Single Job Definite Bond
- Covers a single project and is valid only for a set term (e.g., six months).
- Useful when the scope and duration of work are clearly defined.
6. Single Job Term Bond
- Similar to a single job definite bond but may include variations depending on agency requirements.
- Ensures compliance for one project within a clearly established period.
By selecting the right structure, municipalities ensure adequate coverage while contractors avoid overpaying for unnecessary bond terms.
Cost of a Right of Way Bond
Bond amounts are typically set by the permitting agency and can range from a few thousand dollars to over $100,000, depending on:
- The size and scope of the project.
- The potential risk of damage to public property.
- The contractor’s credit history and financial standing.
Most contractors will pay an annual premium of 1% – 5% of the bond amount. For example, a $25,000 Right of Way Bond might cost between $250 and $1,250 per year, subject to underwriting.
Why Work With Surety Bond Authority?
When you work with Surety Bond Authority, you get:
- Expert guidance – We’ve helped thousands of contractors and businesses secure bonds quickly.
- Competitive rates – Our network of surety partners allows us to find you the best deal.
- Fast approval – Many Right of Way Bonds can be issued within 24 hours.
- Personalized support – We understand local agency requirements and help make the process hassle-free.
Whether you need a blanket bond for multiple permits or a single job bond for one project, we’ll match you with the right option.
Get Started Today
Don’t risk delays on your project because of bond requirements. Apply now and let Surety Bond Authority handle the details so you can focus on the work.
Ready to begin? Contact us today and get your Right of Way Bond issued fast.
Frequently Asked Questions
- What’s the difference between a Right of Way Bond and a Performance Bond?
A Performance Bond guarantees completion of a private contract, while a Right of Way Bond specifically guarantees restoration of public property after permitted work. - How long does it take to get approved?
Most Right of Way Bonds can be issued within 1–2 business days, depending on the size of the bond and your credit profile. - Can one bond cover multiple permits?
Yes. Blanket bonds (continuous, definite, or term) are designed to cover multiple permits, while single job bonds only cover one project. - What happens if the work isn’t completed correctly?
If the contractor fails to restore the right of way, the agency can file a claim against the bond. The surety may pay damages up to the bond amount and then seek reimbursement from the contractor. - Do these bonds expire?
Some do, some don’t. Continuous bonds remain active until canceled, while definite and term bonds have specific expiration dates.