Surety Bond Encyclopedia

Right of Way Bond - City of Bonita Springs, FL in Florida

Brief Summary

Bonita Springs will not issue a right-of-way construction permit until the bond is in hand, so this is usually the item that sets your start date. A surety bond lets you meet the requirement for a premium instead of writing the city a check for 110 percent of your construction estimate.

The City of Bonita Springs requires a cash or surety bond equal to 110 percent of the estimated construction cost, with a minimum of $15,000, before it issues a right-of-way construction permit. Proof of $1,000,000 in liability insurance is also required. Either the property owner or the contractor may provide the bond, and the city supplies its own bond forms for a single permit or for multiple permits.

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How to Apply for a Right of Way Bond:

  • Get a firm estimated construction cost for the work in the right of way.
  • Calculate the bond at 110 percent of that estimate, using $15,000 if the result is lower.
  • Decide whether the owner or the contractor will provide the bond, and whether you need the single or multiple permit form.
  • Apply for the surety bond on the city's Right-of-Way Construction Permit Bond form and pay the premium.
  • Obtain a $1,000,000 liability insurance certificate naming the City of Bonita Springs as additional insured.
  • Submit the application, bond, insurance certificate and permit fee to Bonita Springs Public Works.

Detailed Information About the Florida Right of Way Bond:

The amount is not a flat figure

Most people expect a fixed bond amount for a right-of-way permit. In Bonita Springs it scales with the job. The city's Application for Right-of-Way Construction Permit states that proof of liability insurance of $1,000,000.00 and a cash or surety bond equal to 110 percent of the estimated construction cost, with a minimum of $15,000, are required before a right-of-way permit is issued. A small driveway apron or utility tap still carries the $15,000 floor. Larger work in the right of way carries a bond sized to 110 percent of the estimate.

Who posts it

The application has a checkbox for whether the bonding is provided by the owner or the contractor, so either can be the principal. It also asks whether the bond is cash or surety, and whether a surety bond covers a single permit or multiple permits. Contractors who pull right-of-way permits regularly in the city can use the multiple permit form instead of bonding each job separately.

What the bond says

The city's Right-of-Way Construction Permit Bond names the City of Bonita Springs as obligee. The principal agrees to fully indemnify the city against losses arising from the permitted work. The form lets the surety end its liability by giving the city written notice thirty days in advance, which is why a lapsed or cancelled bond can stop future permits on a multiple permit account.

Other items in the packet

The packet includes a certificate of liability insurance naming the city as additional insured, the city's permit fee schedule, and technical conditions such as maintenance of traffic plans consistent with FDOT Index 600 series. Driveway permits for paver or stamped concrete driveways also require a Hold Harmless Agreement. Applications are accepted at City Hall through Public Works, 9101 Bonita Beach Road.

How premium is set

Premium is a percentage of the bond amount, based mainly on the applicant's credit and, for larger amounts, the company's financial strength. Because the bond amount depends on your construction estimate, get the estimate settled before you apply.

Eligibility and Requirements for a Florida Right of Way Bond:

  • Bond amount equal to 110 percent of estimated construction cost, minimum $15,000.
  • City of Bonita Springs as obligee on the city's bond form.
  • Proof of $1,000,000 liability insurance.
  • Cash bond accepted as an alternative to a surety bond.
  • Surety may cancel only with 30 days written notice to the city.

Florida Right of Way Bond FAQs:

How much is the Bonita Springs right-of-way bond?

It equals 110 percent of the estimated construction cost, with a minimum of $15,000. The amount is set by your project estimate, not by a flat schedule.

Can one bond cover more than one permit?

Yes. The city has a multiple permit version of the Right-of-Way Construction Permit Bond, as well as a single permit form.

Does the owner or the contractor post the bond?

Either one. The permit application asks you to check whether bonding is provided by the owner or by the contractor.

Can I post cash instead?

Yes. The application allows a cash bond by check or a surety bond. A surety bond avoids tying up the full amount for the life of the permit.

Is insurance required too?

Yes. Proof of $1,000,000 liability insurance is required before the permit is issued, with the city named as additional insured.

Right of Way in Other Florida Locations

Aventura, FLCity of Kissimmee, FL

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