City/County Street Opening, Obstruction, Excavation, or Right of Way Bonds: What You Need to Know
If your business plans to perform work that involves opening, obstructing, excavating, or occupying public streets, sidewalks, or other rights of way, you might be required to obtain a special bond called a Street Opening, Obstruction, Excavation, or Right of Way Bond.
What are These Bonds?
These bonds serve as a form of financial guarantee to the city or county. They ensure that any work performed will be completed according to local regulations and standards. The bond covers potential costs incurred by the city/county if the work isn’t done properly or if damage occurs to public property.
Who Needs Them?
Typically, contractors, utility companies, and other businesses conducting the following types of work need these bonds:
- Installing or repairing underground utilities (water, sewer, gas, electricity)
- Road repairs, widening, or other construction projects
- Temporary closures or obstructions of streets or sidewalks
- Excavating or digging in public rights of way
How Do These Bonds Work?
If you fail to complete your work as agreed, or if your work causes damage to public property, the city/county can file a claim against your bond. The surety company that issued the bond will then investigate the claim. If the claim is valid, the surety company will pay out damages up to the bond limit, and you are responsible for reimbursing the surety company for those expenses.
Why are These Bonds Important?
- **Protect public property:** They help to ensure that public infrastructure is not damaged or compromised.
- **Ensure work quality:** They hold contractors accountable for completing work according to approved standards.
- **Public safety:** They ensure that work sites are properly secured and that safety measures are in place to protect the public.
- **Financial protection:** They provide a source of funding to repair any damage caused by the work, minimizing taxpayer burden.
Prineville Insurance: Your Surety Bond Specialist
Navigating the world of surety bonds can be complex. Prineville Insurance is here to guide you through the process, help you understand the specific requirements for your project, and obtain the necessary bonds efficiently. Don’t let surety bond issues delay your project – let us help you get your work started smoothly and legally.
