What is a Right of Way Bond?
When a contractor’s work affects adjacent public property, the city of Austin, Texas, requires a right-of-way bond. But the requirement is not limited to contractors. Anyone whose business operations could affect a public right of way (ROW) may need a bond before applying for a permit. Not all applicants for a permit need a bond, so it is a good idea to know who needs a bond and why. What is the purpose of an ROW bond, and how can it be purchased?
What Is the Purpose of a Right-of-Way Bond?
The city of Austin requires businesses to comply with regulations that protect the public’s safe access to ROW areas. The Austin Municipal Code Use of Right-of-Way and Transportation stipulates certain rules for avoiding hazardous conditions, preventing or repairing damages, and ensuring public safety. The city grants permits to entities whose services or operations affect areas of public ROW. An ROW bond serves as a financial protection in case a claim is made against the city because of the activity and/or culpability of a permit holder. Business operators applying for an ROW permit may also need to purchase a $10,000 bond prior to submitting their application.
Pricing
The cost of the bond, or the premium, varies and is determined by the amount of your bond coverage. The condition of the property that is near your private work site also may impact your costs.
Who Needs to Purchase a ROW Bond
Not all businesses need to purchase a bond before applying. The following chart specifies which businesses or services would require a bond in order to apply for a permit and which businesses or services would not require a bond.
Bond Required
- Contractors performing excavation
- Driveway and sidewalk contractors
- Dumpster owners
- Sidewalk cafes
- Services using ROW temporarily
No Bond Required
- Film companies
- Valet parking services
- Vendors
- Temporary storage containers
- Parking
Bond Purchase Process
1. Find Your Bond
3. Buy Online
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Frequently Asked Questions
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The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!