Surety Bond Encyclopedia

ROW Permit Bond - Hobart, IN in Indiana

Brief Summary

The $500 figure most people quote for a Hobart right of way bond is only the floor. The City Engineer sets the actual amount for each job, and the bond has to stay in force for at least a year after the work is done and until every claim is settled. Knowing that before you price the job keeps a permit from stalling at the Clerk-Treasurer's window.

Hobart Code 94.23 requires anyone who cuts into, tunnels under or excavates a street, alley, pavement, berm, parkway or sidewalk to file a bond with the City Clerk-Treasurer before the permit is issued. The City Engineer sets the amount, never less than $500. The bond guarantees the work is done to the engineer's satisfaction and indemnifies the city against third party damage claims, and it must stay in force for at least one year after the work is completed.

We can help with all Indiana bonds!

How to Apply for a ROW Permit Bond:

Complete the City of Hobart right of way permit application with location, excavation type, dimensions and estimated restoration cost.
Submit it to the Engineering Department at 414 Main St. at least 48 hours before work starts.
Get the required bond amount from the City Engineer.
Have the surety issue the bond with the City of Hobart as obligee.
File the executed bond with the City Clerk-Treasurer before any work begins.
Pay the excavation fee and finish the work within 60 days unless the engineer extends it.

Detailed Information About the Indiana ROW Permit Bond:

The amount is set per job

Hobart Code 94.23(A) says the bond is in the amount the City Engineer determines, but in no case less than $500. The city's Street, Curb, Sidewalk, Alley, Bridge or Right of Way Permit Application asks for the estimated construction and restoration cost and has a blank for the required bond amount, which the engineer fills in at review. Expect a larger figure on bigger cuts and longitudinal work.

What the bond guarantees

The bond promises that the permittee will faithfully perform the work in a manner satisfactory to the City Engineer. It also indemnifies the city against damages to third persons caused by negligence or improper work. Under 94.23(B), the permittee must keep the bond in force for at least one year after the work is completed, and the Clerk-Treasurer will not release it until all claims are settled.

A second guarantee for pavement

Section 94.24 lets the engineer require an additional guarantee that cut or disturbed pavement will be properly replaced. That can be a cash deposit sized to the repair cost, forfeited if the repair is not made to the engineer's satisfaction within the permit time limit and in any case within 60 days. As an alternative, the permittee can file a second bond in an amount the engineer sets, guaranteeing the street, alley, bridge, curb or sidewalk is put back in as good condition as before.

Who posts it

Section 94.20 makes it unlawful for any person to cut into or tunnel under a street or alley, or through or across any pavement, berm, parkway or sidewalk, without a permit from the City Engineer, and 94.23 applies the bond to any person seeking that permit. Contractors, utility crews and property owners doing the work all fall under it.

Timing and fees

Apply at least 48 hours before the excavation starts (94.21). Work must be completed within 60 days of the permit date unless the engineer extends it (94.26). Section 94.22 lists the application fee as $50 for a lateral cut and $100 for a longitudinal cut. The Engineering Department application form lists $50 per lateral excavation and $250 per longitudinal excavation, including borings, so confirm the current fee when you apply.

What it costs

You pay the surety a premium, not the bond amount. It is based on the amount the engineer sets and on the applicant's credit and finances.

Eligibility and Requirements for a Indiana ROW Permit Bond:

Bond amount set by the City Engineer, never less than $500 (Hobart Code 94.23).
Bond filed with the City Clerk-Treasurer before the permit is issued.
Guarantee of work satisfactory to the City Engineer plus indemnity for third party damages.
Bond kept in force at least one year after completion and until all claims are settled.
Possible additional cash deposit or bond for pavement replacement under 94.24.

Indiana ROW Permit Bond FAQs:

Is the Hobart right of way bond $500?

$500 is the minimum. Hobart Code 94.23 lets the City Engineer set any amount above that, and the city's permit application has a blank for the required bond amount next to the estimated restoration cost. Get the figure from the engineer before ordering the bond.

How long does the bond have to stay active?

At least one year after the work is completed, and the City Clerk-Treasurer will not release it until the permittee has settled all claims. Plan on carrying the bond well past the end of the job.

Can the city ask for more than one guarantee?

Yes. Under 94.24 the engineer can require an additional guarantee that disturbed pavement will be replaced. That is a cash deposit sized to the repair, or a second bond in an amount the engineer sets.

What are the permit fees?

Hobart Code 94.22 lists $50 for a lateral cut and $100 for a longitudinal cut. The Engineering Department's application form lists $50 per lateral excavation and $250 per longitudinal excavation, including borings. Confirm the current fee when you apply.

How much notice does the city need?

Apply at least 48 hours before the excavation starts. The work must be finished within 60 days of the permit date unless the City Engineer extends it.