Commercial Driveway Installation ($10,000) Bond - City of Bloomington, IN in Indiana

Brief Summary

In Bloomington, a commercial driveway cut into the public right of way carries a $10,000 bond, twice the residential figure, and the bond has to be on file before the city will issue the right-of-way use permit. One continuing bond can cover all of your permitted work, so a contractor who pours driveways regularly buys it once and keeps it current instead of bonding every job.

The City of Bloomington requires a $10,000 bond, payable to the city, from anyone installing a commercial driveway in the public right of way. Bloomington Municipal Code 12.08.060 requires the bond with the right-of-way use permit application, and the amount is set in the bond schedule at 12.08.070. The bond holds the city harmless from any loss, cost or damage caused by the work and guarantees the work meets all applicable laws.

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How to Apply for a Commercial Driveway Installation ($10,000) Bond:

• Confirm the job is a commercial driveway, which carries the $10,000 bond rather than the $5,000 residential amount.
• Decide whether you need a bond for this permit only or a larger continuing bond to cover several active permits.
• Have the legal business name exactly as it will appear on the Civic Access permit application.
• Give the owner's name, home address and Social Security number for the credit review.
• Pay the premium and receive the executed bond, payable to the City of Bloomington.
• Submit the bond with the right-of-way use permit application and the $100 application fee through Civic Access.

Detailed Information About the Indiana Commercial Driveway Installation ($10,000) Bond:

Commercial and residential are bonded differently

Bloomington's bond schedule in Municipal Code 12.08.070 sets the commercial driveway installation bond at $10,000. A residential driveway installation is $5,000. Other right-of-way work has its own figures, including $20,000 for a street cut and $5,000 each for a push or bore, pole placement or removal, storage, sidewalk replacement and closures. Contractors who normally pour residential drives are the ones most often caught short when a commercial job comes in. The bond is per permit unless a larger bond is already on file that is big enough to cover all of your active permits.

Where the requirement comes from

The City Council adopted Ordinance 20-21 on November 4, 2020, replacing the old excavations chapter with Chapter 12.08, Use of the Right of Way. Under 12.08.020, anyone closing, prohibiting access to, digging, cutting or excavating in or next to pavement must get a right-of-way use permit. Under 12.08.060, the bond is filed at the same time as the permit application, payable to the city and filed with the transportation and traffic engineer or their designee.

What the bond covers and for how long

The bond is conditioned to hold the city harmless from any loss, cost or damage from the work, and to guarantee the work is done in conformity with all laws. The city may require a single or continuing bond covering all of your work from the date the bond is signed until two years after the project is completed. Plan on keeping the bond in force through that two year tail.

Who is exempt, and who is not

Entities with a bonding agreement approved and filed with the Board of Public Works are exempt from 12.08.060. The ordinance lists City of Bloomington Utilities, Indiana University, the Monroe County Community School Corporation, Monroe County, the State of Indiana, the Indiana Department of Transportation, 501(c)(3) nonprofits and utilities working on city-owned devices. The exemption belongs to the entity, not its contractor. A contractor hired by any of them still needs its own bond on file with the city unless the city approves otherwise.

Filing and fees

Right-of-way permits are applied for and paid through the city's Civic Access portal. The city no longer accepts paper applications. The right-of-way use application fee is $100. Confirm the current bond form and filing steps with the Engineering Department before the bond is issued.

How premium is set

The surety prices the bond on the owner's personal credit and the company's experience with right-of-way and concrete work. A bond that also has to carry the two year post-completion period, or a larger continuing bond covering several permits, is underwritten on the full amount you ask for.

Eligibility and Requirements for a Indiana Commercial Driveway Installation ($10,000) Bond:

• Bond amount of $10,000 for commercial driveway installation under Bloomington Municipal Code 12.08.070.
• City of Bloomington named as obligee, filed with the transportation and traffic engineer or designee.
• Condition to hold the city harmless from any loss, cost or damage and to perform the work in conformity with all laws.
• Coverage from the date the bond is signed until two years after the project is completed.
• Bond on file before the right-of-way use permit is issued.
• Contractors working for exempt entities such as Indiana University or Monroe County still post their own bond unless the city approves otherwise.

Indiana Commercial Driveway Installation ($10,000) Bond FAQs:

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