Surety Bond Encyclopedia

Right of Way ($5,000) Bond - City of Bloomington, IN in Indiana

Brief Summary

The $5,000 right of way bond covers most of the smaller jobs Bloomington permits in its streets and sidewalks, from a residential driveway to a dumpster at the curb. It has to be filed with the permit application, so it is worth having in hand before you apply. You pay a premium instead of posting $5,000 in cash, and most contractors are issued the bond the same day.

Bloomington Municipal Code 12.08.060 requires anyone applying for a right of way use or excavation permit to file a bond payable to the City of Bloomington at the same time as the application. Under 12.08.070 the bond is $5,000 for push or bore work, placing or removing poles, residential driveway installation, dumpster or material storage, sidewalk replacement, and lane, bike lane, sidewalk or street closures. Street cuts and commercial driveways carry higher amounts.

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How to Apply for a Right of Way ($5,000) Bond:

Confirm your permit type falls in the $5,000 tier and not the street cut or commercial driveway tier.
Have the contractor's legal name exactly as it will appear on the right of way permit application.
Owner name, home address and Social Security number for the credit review.
Complete the bond application and review the quoted premium.
Pay the premium and receive the executed $5,000 bond payable to the City of Bloomington.
File the bond with the permit application in Civic Access, along with the $100 application fee and certificate of insurance.

Detailed Information About the Indiana Right of Way ($5,000) Bond:

Which jobs carry the $5,000 bond

The bond amount depends on the type of permit, under Bloomington Municipal Code 12.08.070 as amended by Ordinance 20-21.

$5,000 applies to push or bore, placement or removal of poles, residential driveway installation, storage of dumpsters or construction materials, sidewalk replacement, a lane, bike lane or sidewalk closure, and a street closure.

Two permit types are higher. A street cut is $20,000 and a commercial driveway installation is $10,000. If your work includes a street cut, the $5,000 bond is not enough.

The transportation and traffic engineer or a designee can also set a different amount, and may require a bond of up to the total projected cost of the project plus twenty five percent.

When and how it is filed

Section 12.08.060 says the bond is filed at the time of the permit application under 12.08.030, payable to the city. It is conditioned to hold the city harmless from any loss, cost or damage caused by the proposed work. A single or continuing bond may be required to cover all of an applicant's work from the date the bond is executed until two years after the date of completion, so do not cancel it the day the job wraps.

Applications go through the city's Civic Access portal. The general application fee is $100, with use fees on top, such as $1.00 per square foot of street surface disturbed and $0.10 per lineal foot for push or bore. A certificate of insurance is also required.

Who is exempt

Entities with a bonding agreement approved and filed with the Board of Public Works are exempt. Eligible entities are City of Bloomington Utilities, Indiana University, Monroe County Community School Corporation, Monroe County, the State of Indiana, INDOT, 501(c)(3) not for profit agencies, and any utility or entity working on a device or appurtenance owned or operated by and at the direction of the city. Contractors hired by those entities still need a bond on file with the city unless the approved agreement says otherwise.

How premium is set

The premium is set by the surety after reviewing the owner's credit and the contractor's history. The $5,000 is the surety's limit, not what you pay.

Before you file

Confirm the bond amount for your permit type and the current bond format with Bloomington Engineering at 812-349-3913 before the bond is issued.

Eligibility and Requirements for a Indiana Right of Way ($5,000) Bond:

Bond amount of $5,000 for the permit types listed in BMC 12.08.070.
City of Bloomington named as obligee.
Condition to hold the city harmless from any loss, cost or damage from the work.
Coverage that can run until two years after the date of completion.
A certificate of insurance filed with the permit application.

Indiana Right of Way ($5,000) Bond FAQs:

Is $5,000 enough for a street cut?

No. BMC 12.08.070 sets the street cut bond at $20,000 and the commercial driveway bond at $10,000. The $5,000 amount covers push or bore, poles, residential driveways, dumpster and material storage, sidewalk replacement, and lane, bike lane, sidewalk or street closures.

We are working for Indiana University. Do we need our own bond?

Usually yes. The university can be exempt through a bonding agreement with the Board of Public Works, but contractors hired by exempt entities must have a bond on file with the city unless the approved agreement says otherwise.

Can the city ask for more than $5,000?

Yes. The transportation and traffic engineer or a designee may designate a different amount, up to the total projected cost of the project plus twenty five percent.

How long does the bond need to stay in force?

A single or continuing bond may be required to cover work from the date the bond is executed until two years after the date of completion.

How much does the bond cost?

You pay a premium, not the $5,000. The surety sets it after reviewing the owner's credit and the contractor's history. Apply to see the quoted price.