Right of Way Performance Bond - Statewide in Georgia

Brief Summary

The Georgia DOT bond amount is not one number. It comes off a table keyed to the posted speed limit, the number of turn lanes and whether the road is curbed, and a new signal adds $120,000 on its own. Know your row before you order the bond and the permit is not held up for a rider.

The Georgia Department of Transportation requires a performance bond or letter of escrow from every applicant for a commercial driveway or special encroachment permit on the state highway right of way. The amount is set by Table 2-1 of GDOT's Regulations for Driveway and Encroachment Control, from a $40,000 minimum up to $170,000 per driveway, plus $120,000 for a new traffic signal or $60,000 for a signal modification. The bond is released once the work is completed to the inspector's satisfaction.

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How to Apply for a Right of Way Performance Bond:

• Identify your Table 2-1 row: posted speed limit, number of turn lanes, and urban or rural roadway.
• Add signal amounts and additional driveways to reach the total bond amount.
• Confirm the exact applicant name, owner or developer, that must appear on the bond.
• Complete the bond application with owner credit and, for larger amounts, company financial statements.
• Receive the executed performance bond naming the Georgia Department of Transportation.
• Submit the bond with insurance and all other requirements to GDOT before the permit is issued.

Detailed Information About the Georgia Right of Way Performance Bond:

The amount depends on your driveway

GDOT sets the bond from estimated construction cost using Table 2-1 of the Regulations for Driveway and Encroachment Control. Three things decide your row: the posted speed limit, whether you are building one turn lane or two, and whether the road is urban (curb and gutter) or rural (paved or graded shoulders). The minimum bond amounts are:

35 mph or less: $40,000 rural or $60,000 urban with one turn lane, $70,000 rural or $90,000 urban with two.

40 to 45 mph: $50,000 rural or $70,000 urban with one turn lane, $100,000 rural or $120,000 urban with two.

50 to 55 mph: $60,000 rural or $80,000 urban with one turn lane, $120,000 rural or $140,000 urban with two.

60 mph or more: $70,000 rural or $90,000 urban with one turn lane, $150,000 rural or $170,000 urban with two.

Add $120,000 if the project installs a new traffic signal, or $60,000 to modify an existing one. With multiple driveways, the amounts for each drive are added together. The District Engineer can raise the amount. Where a Special Encroachment Permit involves no turn lanes, the bond is half the minimum amount, or more depending on the scope of work as determined by the Traffic Operations Manager.

What the bond guarantees

Under Section 2.2 the bond assures that the permitted work is built in accordance with the approved permit. If the applicant does not comply, GDOT uses it to pay for correcting or removing incomplete or unauthorized work and to cover damages the Department or others suffer from the work. The regulations cite Georgia Code 32-6-51 and 32-6-133 as authority.

Who posts it

The bond must name the owner or entity applying for the permit. Applications are accepted from the property owner, a lessor under a lease of at least three years, an official of the owning organization, or a developer holding a development agreement signed by every affected property owner. When a site is developed for more than one owner under a development agreement, the bond must be in the developer's name. GDOT's special encroachment chapter notes that local and city governments may be exempt from bond requirements.

Options that save time

Blanket performance bonds are accepted, sized from Table 2-1 and the number of permits you expect to request statewide during the bond period. GDOT also accepts a letter of credit in a format it has preapproved, available from the District Operations Engineer. The surety does not have to be based in Georgia.

Timing and release

All bonds, insurance and other requirements must be submitted before the permit is issued. Once the completed bond is furnished, the Area Engineer issues the approved permit plans and permit poster. Work must be completed within 12 months of approval, and the bond is released after the inspector accepts the finished work.

How premium is set

Premium is charged on the bond amount from your Table 2-1 row. The surety prices it on the principal's credit, financial statements for larger amounts, and experience with similar roadway work.

Eligibility and Requirements for a Georgia Right of Way Performance Bond:

• Bond amount from GDOT Table 2-1, with a $40,000 minimum per driveway.
• $120,000 added for a new signal, $60,000 for a signal modification.
• Principal name matching the permit applicant, or the developer under a development agreement.
• Surety may be domiciled outside Georgia.
• Letter of credit accepted only in the GDOT preapproved format.

Georgia Right of Way Performance Bond FAQs:

Official and Additional Resources for the Georgia Right of Way Performance Bond: