Surety Bond Encyclopedia

Right of Way Bond - City of Mobile, AL in Alabama

Brief Summary

Mobile's right of way bond does not end when the concrete cures. It keeps you on the hook to maintain your work in the City right of way for two years after the City accepts it. Getting the bond written correctly on the City's own form the first time keeps your ROW permit moving through Engineering.

The City of Mobile Right of Way Performance Bond guarantees that a permittee will complete work in the City right of way to permit requirements and then maintain that work for two years from the date the City accepts it. The City of Mobile, Alabama is the obligee. The penal sum is left blank on the City's form and is set for each permit, so confirm the amount with the Engineering Permitting ROW Section before the bond is issued.

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How to Apply for a Right of Way Bond:

  • Pick the correct City ROW permit application for the work and get the required bond amount from the Engineering Permitting ROW Section.
  • Use the City of Mobile Right of Way Performance Bond Letter as the bond form.
  • Have the principal's company legal name and the signer's official title ready.
  • Provide owner and company information for underwriting.
  • Pay the premium and receive the bond signed by the surety's attorney in fact, sealed, with the Alabama resident agent shown and power of attorney attached.
  • Submit with the permit to Engineering Permitting, Right of Way Section, 205 Government Street, South Tower, 3rd Floor, or by mail to PO Box 1827, Mobile, AL 36633-1827.

Detailed Information About the Alabama Right of Way Bond:

The two year tail

The City's ROW Performance Bond Letter binds the contractor and surety to the City of Mobile, Alabama, and requires the principal to continue to maintain all work within the City right of way for a period of two years from the date of acceptance of the work. Only after that period, and only if the permit requirements have been met, does the obligation become void. Plan on keeping the bond in force well past the end of construction.

Who needs it

Right of way permits in Mobile are handled by the Engineering Permitting Department, Right of Way Section. The City publishes separate ROW permit applications for franchise utilities, major and minor projects, residential driveways and sidewalks, non utility use of the right of way, and wireless facilities. A major project is one greater than 500 linear feet or one city block. The performance bond is posted by the contractor or permittee doing the work.

How the amount is set

The penal sum on the City's form is blank and is filled in for the specific permit. Ask the ROW Section for the required amount before you apply, and use the ROW Permit Fee Tabulation Sheet the City publishes for the permit fee.

Signing the bond

The City's form calls for the principal's signature with official title and company legal name, an attesting signature, the surety's attorney in fact with seal, and the surety's Alabama resident agent. A power of attorney must be attached.

Insurance is separate

The City's Non Utility ROW Usage Application separately requires general liability insurance with a limit of not less than $1,000,000. The bond does not take the place of that policy.

Premium

Premium depends on the penal sum the City sets, the scope of the work, and the contractor's credit and financial history.

Eligibility and Requirements for a Alabama Right of Way Bond:

  • City of Mobile, Alabama named as obligee.
  • Penal sum as set by the City for the specific permit.
  • Two year maintenance period running from acceptance of the work.
  • Signature by the surety's attorney in fact and its Alabama resident agent, with power of attorney attached.
  • Separate general liability insurance where the ROW application requires it.

Alabama Right of Way Bond FAQs:

When can the bond be released?

Under the City's bond form, after the two year maintenance period that begins on the date the City accepts the work, and only if the permit requirements have been met.

How much is the bond?

The City's form leaves the penal sum blank so it can be set for each permit. Get the figure from the Engineering Permitting ROW Section before the bond is written.

Is there a required form?

Yes. Build Mobile publishes a ROW Performance Bond Letter naming the City of Mobile, Alabama as obligee.

Does the bond satisfy the insurance requirement?

No. The Non Utility ROW Usage Application calls for a general liability policy of not less than $1,000,000, separate from any bond.

Who do I contact at the City?

The Engineering Department ROW Section at 251-208-6070 or rightofway.permits@cityofmobile.org.

Other City of Mobile, AL Surety Bonds in Alabama

Permitting Contractor License ($10,000)Special Events ($10,000)Special Events ($5,000)Utility Deposit for Water Service

Right of Way in Other Alabama Locations

Mobile County, AL

All Alabama Right of Way bonds · All City of Mobile, AL bonds · All Alabama surety bonds