Surety Bond Encyclopedia

Right of Way (Corporation) Bond - South Florida Water Management District in Florida

Brief Summary

This bond is the financial assurance the South Florida Water Management District asks for before a corporation can occupy District right of way. The amount is not a fixed number on a price list. It comes from the type of work you are doing, and for bridges and private force mains it comes from an engineer's estimate you pay for. Posting a surety bond keeps that sum available to your business instead of tied up in a cash deposit.

Under Florida Administrative Code Rule 40E-6.361, anyone holding a Right of Way Occupancy Permit from the South Florida Water Management District must provide and keep in place financial assurance, plus liability insurance naming the District as an additional insured. A corporation can meet the assurance with a performance bond from a licensed surety on the District's form OM-ROW-1336. The bond amount depends on the permitted use.

We can help with all Florida bonds!

How to Apply for a Right of Way (Corporation) Bond:

Confirm the bond amount with District right of way staff for your specific use before ordering the bond.
For a private bridge or non governmental force main, obtain the itemized engineer or demolition estimate and have it approved by District staff.
Have the corporation's exact legal name as shown on the Right of Way Occupancy application.
Complete the bond application and review the quoted premium.
Have the surety execute form OM-ROW-1336 and the Surety Company Affidavit, form OM-ROW-1335.
File the bond with the District through ROW E-Permitting along with the application and any required fee.

Detailed Information About the Florida Right of Way (Corporation) Bond:

The amount depends on what you are building

The most common mistake is assuming there is one standard bond amount. Rule 40E-6.361 sets it by use. A temporary haul or access road requires $5,000 for each half mile or fraction of a half mile, with a $5,000 minimum. A private bridge requires an amount based on an itemized estimate from a professional engineer or certified demolition company, paid for by the applicant, covering demolition, debris removal and restoration of the right of way. District staff review and approve that estimate. A water or sewer force main built by a party other than a governmental entity uses the same estimate method. For every other use, District staff set the amount based on liability and environmental risk.

What the bond guarantees

The District's form, Surety Bond to Demonstrate Financial Assurance (Right of Way Section), OM-ROW-1336, conditions the bond on the principal completing the work described in its Right of Way Occupancy Application or Permit and approved plans to the satisfaction of the District. The obligee is the South Florida Water Management District. The surety also completes a Surety Company Affidavit, form OM-ROW-1335.

Other ways to meet the requirement

The rule also accepts a cash bond held in a non interest bearing account or a letter of credit from a financial institution authorized to do business in Florida, and the District may approve other instruments. For a force main, the assurance is released once a governmental entity accepts the facility and District staff issue a permit transfer.

Insurance is a separate requirement

The bond does not replace the liability insurance. The rule requires a policy naming the District as an additional insured, in the amount and type District staff decide, written by an insurer authorized in Florida or provided through a qualifying self insurance program. Both the assurance and the insurance must stay in force for the permit to remain valid.

Eligibility and Requirements for a Florida Right of Way (Corporation) Bond:

South Florida Water Management District named as obligee.
Performance bond issued by a licensed bonding company.
Bond amount set under Rule 40E-6.361 for your use type, with a $5,000 minimum for haul or access roads.
Liability insurance naming the District as an additional insured, maintained alongside the bond.
Corporate financial and credit review by the surety. Premium is set by the surety based on the bond amount and the company's credit and financial strength.

Florida Right of Way (Corporation) Bond FAQs:

How much is the bond?

It depends on the permitted use. Temporary haul or access roads require $5,000 per half mile or fraction, with a $5,000 minimum. Private bridges and non governmental water or sewer force mains use an approved engineer or demolition estimate. Other uses are set by District staff based on liability and environmental risk.

Does the bond cover our liability insurance requirement?

No. Rule 40E-6.361 requires both financial assurance and liability insurance naming the District as an additional insured. The bond only satisfies the financial assurance part.

Can we post cash or a letter of credit instead?

Yes. The rule accepts a cash bond in a non interest bearing account or a letter of credit from a financial institution authorized in Florida, and the District may approve other instruments. A surety bond avoids tying up the full amount.

When is a force main bond released?

Under the rule, the assurance for a water or sewer force main is released after a governmental entity accepts the facility and District staff issue a permit transfer.