Surety Bond Encyclopedia

Right of Way Bond - City of Avondale, AZ in Arizona

Brief Summary

Avondale will not issue an Engineering Construction Permit for work in the city right-of-way until it has your original sealed performance bond. Get the bond written on the city's own template, in the amount the city sets for your project, and your permit packet is complete.

The City of Avondale requires an original sealed performance bond from any contractor or developer pulling an Engineering Construction Permit for work in the city right-of-way. The bond names the City of Avondale as obligee and guarantees the listed improvements are built, tested and certified during the permit term, any extension and any guaranty period the permit requires.

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How to Apply for a Right of Way Bond:

  • Complete Construction Plan Review and receive the approved EDPR record.
  • Get the required bond amount for your improvements from the Avondale Engineering Department.
  • Have the surety complete the city's Performance Bond (Offsite Improvements) template with the project name and improvements listed.
  • Submit the original sealed bond with the Engineering Permitting Application, your ROC license number and a certificate of insurance.
  • Deliver one full size hard copy of the approved plan to the city permit counter.

Detailed Information About the Arizona Right of Way Bond:

When Avondale asks for this bond

The Avondale Engineering Department lists an original sealed performance bond as a required submittal for the Engineering Construction Permit whenever the work is in the city right-of-way. That covers permit types such as paving, water and sewer lines, trenching, potholing, streetlights, traffic signals, telecom and curb, gutter and driveway work. Plans must first clear the city's Construction Plan Review and receive an approved EDPR record before the permit is issued.

What the bond guarantees

The city publishes its own form, the Performance Bond (Offsite Improvements). The principal and surety are bound to the City of Avondale for a stated amount, and the bond stays in force until the principal builds the listed improvements, including required testing, reports and certifications. Coverage runs for the permit term, any extension and the life of any guaranty required under the permit. Permit modifications are covered without separate notice to the surety, and the prevailing party in a suit on the bond recovers reasonable attorney fees.

How much it is

The city's template leaves the penal sum blank. The amount is set for the specific improvements on your permit, so get the figure from the Engineering Department before you request the bond.

Related rules

Chapter 21 of the Avondale City Code requires all work under these permits to follow the city's General Engineering Requirements Manual and the Avondale supplement to the MAG specifications. A person who fails to repair or maintain a street repair can be billed the city's full cost plus a 15 percent administrative charge. Confirm the current form and filing steps with the Avondale Engineering Department before the bond is issued.

Eligibility and Requirements for a Arizona Right of Way Bond:

  • City of Avondale named as obligee.
  • Original sealed bond, not a copy.
  • Bond written on the city's Performance Bond (Offsite Improvements) form.
  • Improvements and project name on the bond matching the permit.
  • Signature by the surety's attorney-in-fact with power of attorney attached.

Arizona Right of Way Bond FAQs:

How much is the Avondale right-of-way bond?

The city's form leaves the amount blank because it is set for the improvements on each permit. Ask the Avondale Engineering Department for the figure before ordering the bond.

How long does the bond stay in force?

Under the city's form it covers the permit term, any extension and the life of any guaranty the permit requires. Plan on keeping it active until the city accepts the work and any guaranty period ends.

What happens if a street repair fails?

Avondale City Code 21-47 lets the city order the repair and, if it is not done, do the work and bill the full cost plus a 15 percent administrative charge. The bond backs your obligation to complete the work.

How is the premium set?

The surety looks at the bond amount, your company's financial strength and credit, and your track record on similar work. You pay the premium, not the full bond amount.

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