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Right of Way Bond

Right of way bonds or ROW are a type of license and permit bond. A right-of-way bond applies to work performed in public spaces known as "right of way." A ROW bond is often required before contractors can begin work on a public right of way zone. Contractors must follow specific rules and regulations when operating in these public spaces, which is why most require bonds before beginning the work.

What is a Right of Way Bond?

A right of way surety bond provides a way for public agencies to hold contractors accountable for failure to follow rules governing work in right-of-way zones. When that work results in damages to individuals or the public at large, the bond requires the contractor to pay financial compensation. States require bonds as a way to standardize construction practices in right-of-way zones and to ensure negligent contractors can be held liable for their mistakes.

How does a Right of Way Bond work?

If the state agency responsible for a particular right of way believes a contractor hasn't followed applicable rules and regulations, the agency may file a claim against the bond seeking damages up to the total bond amount. The surety company that backs the bond guarantees payment even if the principal refuses to pay. In that instance, the surety steps in to pay, but the principal must pay the surety back the full amount plus interest and fees.

Who should get a Right of Way Bond?

You will know whether you need a bond when you pursue a permit to work in a right-of-way-zone. Permits are contingent on having a surety bond, so it's important to secure a bond sooner rather than later. Viking Bond Service makes that easy by returning you a quote for a quality, full-compliant bond in less than 24hours.

Who are the parties involved in a Right of Way Bond?

The easiest way to understand how these bonds work is to understand the role of each party involved:

• Principal - The contractor required to obtain the bond and obligated to settle any claims filed against the bond.
• Obligee - The state agency that specifies the bond requirements and has the right to file claims if those requirements are not met.
• Surety - The company that issues and backs the bond. The surety guarantees payment of all valid bonds, but the principal has the final financial responsibility for those claims.

How much does a Right of Way Bond cost?

Surety bond costs differ in every state, city, and even county. The requirements outline how large the bond must be, meaning how much the surety agrees to pay out in claims - eg. $20,000. Premiums for a ROW bond are a small percentage of the total and are based on the applicant's credit scores and financial history. ROW bonds are often quoted at $250 but the price does increase for larger bond amounts. Applicants with bad credit can count on Viking Bond Service to find them options even when they have been denied elsewhere.

How are claims handled for Right of Way Bond?

The surety investigates every claim thoroughly to verify that the details occurred exactly as the claimant (the obligee) alleges. Provided that everything checks out, the surety settles the claim. Afterwards, the surety company uses whatever legal means necessary to collect the amount of the settlement from the principal (the contractor) with interest and fees added to the total.

How to apply for a Right of Way Bond?

To obtain a right of way surety bond in as little as a day, simply complete an online bond application, which asks for information about your personal, professional, and financial background. The surety may require additional documentation as well but the application process is usually very simple. Once you receive your surety bond quote and pay your premium, the bond is made effective and you have fulfilled the mandatory bond requirement.

Viking Bond Service - Active in All 50 States

Obtaining a right of way surety bond shouldn't be a hassle. Request a ROW surety bond quote today and get the surety bond you need in no time at all with the help of Viking Bond Service - the top trusted surety bond agency. Our bond experts are here to answer your questions and explain exactly how your bond works - simply contact our team through the form on this page or at 1-888-278-7389. If you already have all the info you need, submit your bond application at any time.