Surety Bond Encyclopedia

Right of Way Permit Bond - Houston County, GA in Georgia

Brief Summary

A right of way permit bond lets you start work in a Houston County road right of way without leaving cash or a letter of credit tied up for a year after final inspection. You pay a premium on the amount the county engineer sets, most contractors are quoted the same day, and the bond goes into the permit file before approval.

Houston County requires a permit before any work or nonroutine maintenance within county rights of way. Depending on the scope, the reviewing engineer may require a performance bond, escrow letter or letter of credit, and sets its amount before approval at 125% of current in-place construction unit prices. Residential driveway bonds are set at 125% of construction and not less than $10,000. The security stays in effect for 12 months after final inspection.

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How to Apply for a Right of Way Permit Bond:

  • Submit your right of way or driveway permit application so the reviewing engineer can set the bond amount.
  • Get the assigned bond amount from the engineer. It is 125% of current in-place construction unit prices.
  • Have the legal name of the applicant exactly as it appears on the permit application.
  • Owner name, home address and Social Security number for the credit review.
  • Complete the bond application, pay the premium and sign the bond naming Houston County as obligee.
  • File the bond before permit approval and keep it in force for 12 months after final inspection.

Detailed Information About the Georgia Right of Way Permit Bond:

There is no flat amount. The engineer prices your job.

Most people expect a fixed figure. Houston County does not use one. Section 2B of the county's Regulations for Access Management and Encroachment Control says that, depending on the scope of the work, a performance bond, escrow letter or letter of credit may be required to make sure the work is completed as approved and on time. The reviewing engineer assigns a dollar amount large enough that the county incurs no cost if corrective action is needed, and sets it before the application is approved at 125% of current in-place construction unit prices.

For residential driveways, Section 6B-14 says a performance bond may be required in cases where building or temporarily using the driveway could damage the roadway or right of way. The county engineer or his agent discusses the requirement with the applicant before approval and sets the bond at 125% of the construction amount using current construction price index values, and not less than $10,000.

The bond outlives the job

Under Section 2D, the performance bond, escrow letter or letter of credit is held and stays in effect for 12 months from the date of final inspection. Plan your bond term around that date, not the day the crew leaves the site.

Who needs the permit

Section 1D requires a permit before any type of work or nonroutine maintenance within the rights of way of Houston County. Applications are filed at the Houston County Building Inspector's Office or the Public Works Department, or may be e-filed, and a member of the engineering staff reviews each one and recommends approval or disapproval. A commercial driveway permit costs $75 and covers all related inspections. A noncommercial driveway permit costs $50.

The special encroachment chapter states that contractors working for and under a contract with Houston County are exempt from the permitting process, and that utility owners are covered under a separate utility accommodation permit.

What the bond guarantees

The contractor or property owner is the principal, Houston County is the obligee, and the surety guarantees the work in the right of way is completed as approved and in a timely manner. If the county has to correct the work, it can recover its cost from the bond, and the principal repays the surety. Confirm the current bond form and filing steps with the Houston County Engineering Department before the bond is issued.

How premium is set

The surety prices the bond from the amount the engineer assigns, the owner's personal credit, the contractor's financial strength and experience, and any prior claims. The premium is charged on the bond term, which runs through the 12 month hold after final inspection.

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

  • Performance bond, escrow letter or letter of credit in the amount the reviewing engineer sets.
  • Amount set at 125% of current in-place construction unit prices.
  • Residential driveway bonds, when required, of not less than $10,000.
  • Security held for 12 months from the date of final inspection.
  • Permit fee of $75 for a commercial driveway or $50 for a noncommercial driveway.
  • Owner credit review. Credit mainly shapes the premium rate.

Georgia Right of Way Permit Bond FAQs:

How much is the Houston County right of way bond?

The reviewing engineer sets it before approval at 125% of current in-place construction unit prices for your job. For a residential driveway that needs a bond, the amount is 125% of construction and not less than $10,000.

How long does the bond have to stay in force?

Section 2D says the performance bond, escrow letter or letter of credit is held and stays in effect for 12 months from the date of final inspection.

Can I use a letter of credit instead of a bond?

Section 2B allows a performance bond, escrow letter or letter of credit. A surety bond avoids tying up cash or bank credit for the 12 month hold.

Where do I apply for the permit?

At the Houston County Building Inspector's Office or the Public Works Department, or by e-filing. A member of the engineering staff reviews the application.

What does the bond cost?

The surety sets the premium from the amount the engineer assigns, the owner's credit, the business financials and claims history. Apply to get an exact quote.

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

Other Houston County, GA Surety Bonds in Georgia

Beer and Wine Retail Sales ($750)

Right of Way Permit in Other Georgia Locations

City of Augusta, GA

All Georgia Right of Way bonds · All Houston County, GA bonds · All Georgia surety bonds