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
Items needed to Be a Licensed ROW Contractor
Gather the necessary documentation to become a licensed ROW contractor. The city of Austin requires the following documents from applicants for a ROW contractor license:
- The original bond
- Proof of insurance
- A Resolution of Authority Form
- An Authorized Agent Form
Items needed to Be a Licensed ROW Contractor
Gather the necessary documentation to become a licensed ROW contractor. The city of Austin requires the following documents from applicants for a ROW contractor license:
- The original bond
- Proof of insurance
- A Resolution of Authority Form
- An Authorized Agent Form
As a leading surety bond provider in Texas, TMD Surety Bonds is a natural choice for businesses needing an ROW bond.
The City of Austin Right-of-Way (Annual Bond) Bond is instantly approved and costs just $100.
Click the button below to purchase your City of Austin Right of Way Bond today.
TMD Surety Bonds will mail your original bond to you so you can begin the permit application process.
- Click the Buy Now button.
- Fill out the easy bond form.
- Confirm your order and select how you would like your bond documents delivered. Email or regular mail.
- Pay for your bond.
- If you chose to have your documents emailed, you will receive them within minutes.
It’s that simple and fast!
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
Get Started
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!
Frequently Asked Questions
You must fulfill the terms of the bond obligations, which vary immensely depending on bond type. Where you obtain your surety bond is important when it comes to understanding claims and avoiding them entirely. If you have any questions about what your bond does or doesn’t guarantee, reach out to our experts to help guide you along the way.
There are hundreds of different bonds for all kinds of purposes—but regardless the industry or project—they all operate essentially the same way. A surety bond guarantees that you will operate professionally and if you break the rules, a claim can be made on your bond which you’re responsible to pay.
It’s a guarantee that you will complete the work and fulfill your contractual obligations. Think of it as insurance for the public, not your business.
This bond is put in place to ensure the safety of the public and the city, and guarantee that the public has the right of way. The bond holder must protect and preserve the public property that is adjacent to the worksite.
If the bond holder doesn’t abide by the terms of the bond and a claim is filed, then your surety company will cover the claim.
Looking to Get Started or Have Questions?
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!