Surety Bond Encyclopedia

Roadway and Right of Way Disturbance Bond - City of Hoover, AL in Alabama

Brief Summary

Cutting a city street, boring under it or tying a driveway or utility into Hoover's right of way means the city wants a guarantee the pavement, curb and shoulder come back in proper shape. A Roadway and Right of Way Disturbance bond gives the city that guarantee for a premium, so the work can be permitted.

The City of Hoover requires a Roadway and Right of Way Disturbance bond from the contractor, utility installer or developer who will disturb a city street or public right of way. The City of Hoover is the obligee. The bond guarantees that the roadway and right of way are restored to city standards, and the city can use it to make repairs if the principal does not.

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How to Apply for a Roadway and Right of Way Disturbance Bond:

  • Confirm the road is a City of Hoover street and not a state route handled by ALDOT.
  • Get the required bond amount and current form from the City of Hoover Engineering Department.
  • Have the work location, scope and any permit number ready.
  • Use the legal name of the contractor or developer exactly as it appears on the city permit.
  • Pay the premium and receive the executed bond naming the City of Hoover as obligee.
  • File the bond with the city before work in the right of way begins.

Detailed Information About the Alabama Roadway and Right of Way Disturbance Bond:

City streets and state highways are separate

Several major roads through Hoover are state routes. Work on a state highway right of way goes through the Alabama Department of Transportation, which issues its own permits through district offices and uses its own bond forms, including BM-174 Bond for Performance of Work and BM-175 Highway Occupancy Permit Blanket Bond. That ALDOT process does not cover city streets. Work in a City of Hoover street or right of way calls for the city's own bond, written to the City of Hoover.

Who posts it

The bond is posted by whoever will open or occupy the city right of way. That includes utility and fiber contractors, driveway and curb cut work, sewer and water tie ins, sidewalk work and developers building connections to existing city streets.

What it guarantees

The bond backs your promise to perform the work in the right of way under the city's conditions and to restore pavement, curbs, sidewalks, shoulders and drainage to city standards. If restoration is not done or fails, the city can claim against the bond and use the proceeds to repair the street. The surety then looks to you for repayment.

Amount and form

The City of Hoover sets the bond amount for the work. Confirm the required amount, the current bond form and the filing steps with the City of Hoover Engineering Department before the bond is issued. Have the location and scope of the right of way work ready.

What it costs

You pay a premium, not the face amount. The surety prices the bond from the amount, the owner's credit and the company's financial position and history with similar work. Your quote shows the exact premium before you pay.

Eligibility and Requirements for a Alabama Roadway and Right of Way Disturbance Bond:

  • City of Hoover named as obligee.
  • Bond amount as set by the city for the work.
  • City approved bond form, confirmed with the Engineering Department.
  • Separate ALDOT permit and bond for any work on a state highway right of way.
  • Owner credit review, plus company financials on larger amounts.

Alabama Roadway and Right of Way Disturbance Bond FAQs:

My work is on a state highway in Hoover. Is this the right bond?

Work on a state route right of way is permitted by ALDOT, which uses its own bond forms. This bond covers City of Hoover streets and right of way. If your project touches both, expect both.

How much is the bond?

The City of Hoover sets the amount for the work. Get the figure and the current form from the Engineering Department before you apply.

When is the bond released?

The bond stays in force until the city accepts the restoration. Ask the Engineering Department what inspection it needs before releasing the bond on your job.

How is the premium set?

The surety reviews the bond amount, the owner's personal credit and the company's finances and work history. You see the exact premium before you pay.

Official and Additional Resources for the Alabama Roadway and Right of Way Disturbance Bond:

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