Surety Bond Encyclopedia

Right of Way Permit ($10,000) Bond - Town of Manchester, CT in Connecticut

Brief Summary

Manchester will not issue a right of way permit until the Public Improvements Bond is on file. A surety bond keeps your cash free for the job, and because it can be written as a blanket bond, a contractor who works in Town roads often can keep one bond in place instead of posting cash permit by permit.

The Town of Manchester requires a Public Improvements Bond before it issues a permit for work in the Town right of way. The Director of Public Works sets the amount for each permit from the approved work and Town unit prices, with a minimum of $10,000. The Town accepts an individual surety bond, a blanket surety bond or cash, and does not accept letters of credit.

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How to Apply for a Right of Way Permit ($10,000) Bond:

  • Submit the Town of Manchester right of way permit application to the Engineering Division.
  • Get the bond amount the Director of Public Works sets for your permit, at least $10,000.
  • Apply for the surety bond in the exact legal name on the permit application.
  • File the executed bond with the certificates of insurance naming the Town as additional insured.
  • Pay the $50 application fee.
  • Start work within 30 days of issuance or the permit is void.
  • Keep the bond in force until the Town completes permanent repairs and accepts the work.

Detailed Information About the Connecticut Right of Way Permit ($10,000) Bond:

$10,000 is the floor, not the fixed amount

Under Section 2.03 of the Town of Manchester Regulations Governing Right-of-Way Permits, the bond amount is set for each permit by the Director of Public Works based on the approved work and the Town's standard unit prices. The minimum is $10,000. A larger excavation can carry a larger bond, and the Town may ask for additional security if the bond on file turns out to be insufficient. The bond is released after final acceptance of the work.

Who needs the permit

Anyone doing work inside an existing or proposed Town right of way needs a permit. That covers sewers, drains, water and gas mains, conduits, driveways, sidewalks and curbs, temporary storage of equipment or materials in the road, and any operation that could cause abnormal wear or damage to pavement, curbs or sidewalks. Work on private property can also need a permit when heavy equipment crosses sidewalks, curbs or grass shelves.

Public service companies regulated or exempted under Connecticut General Statutes 16-229 are not subject to the bond section. Work done under contract with the Town may have its permit fees waived by the Director.

How long the bond stays in force

The Town performs the permanent pavement restoration itself and bills the permittee at its contract unit prices plus a 10 percent markup. The permit stays open until those permanent repairs are done, usually the following construction season, and the bond and insurance must stay in force the whole time. Plan on the bond running well past the day your crew leaves the site.

Insurance and fees

The regulations also require commercial general liability of $1,000,000 per occurrence ($2,000,000 if blasting) with a $2,000,000 general aggregate, business auto liability of $1,000,000, statutory workers compensation, and the Town named as additional insured. The application fee is $50 per permit. Non-emergency excavation between November 15 and April 1 carries a $25 per square yard pavement surcharge. Confirm the bond amount for your permit with the Engineering Division before ordering the bond.

Eligibility and Requirements for a Connecticut Right of Way Permit ($10,000) Bond:

  • Town of Manchester named as obligee.
  • Bond amount set per permit by the Director of Public Works, minimum $10,000.
  • Individual or blanket surety bond, or cash. Letters of credit are not accepted.
  • Commercial general liability, auto liability and workers compensation at the limits in Section 2.04.
  • Premium based on the applicant's credit and the bond amount set for the permit.

Connecticut Right of Way Permit ($10,000) Bond FAQs:

Is the bond always $10,000?

No. $10,000 is the minimum. The Director of Public Works sets the amount for each permit from the approved work and Town standard unit prices, and the Town can require more security if the bond is insufficient.

Can I use a letter of credit instead?

No. Section 2.03 accepts an individual surety bond, a blanket surety bond or cash, and states that letters of credit are not an acceptable form of bond.

When is the bond released?

After final acceptance of the work. The Town does the permanent pavement repair itself, usually the next construction season, so the bond must stay active until then.

Do utility companies need this bond?

Public service companies regulated or exempted under Connecticut General Statutes 16-229 are not subject to the bond section of the regulations.

What does the bond cost?

The premium is a fraction of the bond amount and depends mainly on the applicant's credit and the amount the Town sets. Apply to see an exact quote.

Official and Additional Resources for the Connecticut Right of Way Permit ($10,000) Bond:

Right of Way Permit ($10,000) in Other Connecticut Locations

Town of Prospect, CT

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