Surety Bond Encyclopedia

Blanket Highway Permit - Broadband - MAIL Bond - Indiana DOT in Indiana

Brief Summary

Fiber builders who pull INDOT broadband permits one after another file this bond once and keep working. The rule sets the blanket floor at $500,000, so the question is not whether you need that much but whether your open permits have pushed you past it. Bond at the right level and new permits keep issuing. Paying a premium keeps that $500,000 out of your build budget.

Under 105 IAC 16-1-7, a broadband operator must have a bond before INDOT issues a broadband access permit. A blanket bond has a minimum of $500,000, and the operator must increase it as needed so it covers the total project costs of all open permits. If those costs exceed the blanket amount, INDOT issues no new permits until the bond is increased or permits are closed. The bond is written on the INDOT Blanket Bond for Right-of-Way Permits with Broadband Access checked, names the State of Indiana as obligee, and the notarized original is mailed to INDOT Permits in Indianapolis.

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How to Apply for a Blanket Highway Permit - Broadband - MAIL Bond:

  • Confirm the broadband access agreement with INDOT is fully executed and approved, and the Broadband Corridor Agreement too if you are building on a corridor route.
  • Total the project costs of every broadband permit you expect to have open at once. The bond is $500,000 or that total, whichever is higher.
  • Have the exact legal name of the company that owns the fiber optic cable.
  • Complete the bond application and review the quoted premium.
  • Receive the executed INDOT Blanket Bond for Right-of-Way Permits with Broadband Access checked and the surety's power of attorney attached.
  • Have all three pages signed and notarized, then upload a PDF in EPS.
  • Mail the original to INDOT Permits, 100 N. Senate Ave., N758-Permits, Indianapolis, IN 46204.
  • Order a bond increase rider before open permit costs pass the bond amount.

Detailed Information About the Indiana Blanket Highway Permit - Broadband - MAIL Bond:

The $500,000 floor and the ceiling that moves

105 IAC 16-1-7 is INDOT's broadband bond rule. For a single permit, the operator can post a performance bond of $10,000 for up to 5,000 feet, or $10,000 per mile, or the total project costs for installation in INDOT's right of way, whichever is greater. For a blanket bond the minimum is $500,000. That is where most operators stop reading, and it is where they get caught. The same subsection requires the operator to increase the blanket bond as needed to cover the total project costs of all open permits, and it bars INDOT from issuing new permits once those costs exceed the bond until the bond is increased or permits are closed. A build program that grows mid season needs a bond rider before the next permit, not after.

Whose name goes on the bond

The rule and INDOT's Broadband Permit Guidelines both require the surety to be in the name of the company, and the guidelines say the company that owns the fiber optic cable. If the incorporated name changes for any reason, the bond has to be updated. 105 IAC 16-1-2 defines an operator broadly, to include any broadband service provider, contractor, subcontractor, consultant or affiliated party constructing, operating, providing or installing fiber optic cable. A contractor placing fiber for a carrier should confirm with INDOT whose blanket bond backs each permit before work starts.

The bond is not the only prerequisite

Under 105 IAC 16-1-6, a broadband access agreement must be fully executed by the operator and INDOT and approved by the state approving agencies before any permit issues, and no work may be done in INDOT right of way without both a valid permit and that agreement. INDOT's guidelines add that installing fiber along the routes on INDOT's Broadband Corridor requires a fully executed Broadband Corridor Agreement first. The corridor program comes from IC 8-23-5-10, the dig once broadband corridor statute for limited access highway right of way.

What the permits cover

INDOT's Public Permit Guide sorts broadband permits into six subtypes: New Vertical Structure, State-Owned Vertical Structure, State Facility, Longitudinal Fiber, Transverse Fiber, and Other for access to modify and maintain shared use improvements. Each application carries a $55 nonrefundable fee under INDOT's broadband checklist. As-built plans are submitted after the permitted work is complete.

Why the listing says MAIL

Blanket bonds are not delivered to district offices. The hard copy, with original signatures and notary seals on all three pages, is mailed to INDOT Permits, 100 N. Senate Ave., N758-Permits, Indianapolis, IN 46204, and a PDF copy goes into the Electronic Permit System. Under the form, the bond takes effect on the later of its stated effective date and the date INDOT accepts it and enters it into EPS.

Waivers

The broadband checklist lets qualifying applicants file State Form 35483R, the Bond and/or Permit Fee Waiver. The Public Permit Guide identifies schools, churches and local governments as the entities that may qualify.

Eligibility and Requirements for a Indiana Blanket Highway Permit - Broadband - MAIL Bond:

  • Minimum penal sum of $500,000 under 105 IAC 16-1-7(b).
  • The State of Indiana named as obligee on the INDOT blanket bond form, last updated 8/29/2023.
  • Principal named as the company that owns the fiber, updated if its incorporated name changes.
  • Bond number, surety amount, notarized principal and surety signatures, and power of attorney, per INDOT's broadband checklist.
  • Premium set by the surety from the penal sum and the operator's credit, financial statements and build history.

Indiana Blanket Highway Permit - Broadband - MAIL Bond FAQs:

Is $500,000 the amount or the minimum?

The minimum. 105 IAC 16-1-7 requires the blanket bond to be increased as needed to cover the total project costs of all open permits. Once those costs exceed the bond, INDOT will not issue new permits until you increase it or close permits.

Should we use a blanket bond or single performance bonds?

A single broadband performance bond runs $10,000 for up to 5,000 feet, $10,000 per mile, or total project cost, whichever is greater, one permit at a time. Operators with several permits open at once generally file the blanket bond so each new permit does not need its own bond.

Our contractor is installing the fiber. Whose name is on the bond?

INDOT's guidelines say the surety must be in the name of the company that owns the fiber optic cable, and the permit application must be in the name of the company responsible for installing and maintaining it.

Can we start work once the bond is filed?

Not by itself. Under 105 IAC 16-1-6 you also need a fully executed broadband access agreement, and a valid permit, before any work in INDOT right of way.

Where do we send the blanket bond?

Mail the original to INDOT Permits, 100 N. Senate Ave., N758-Permits, Indianapolis, IN 46204 and upload a PDF in EPS. Release is requested by emailing the Bond Release Information Request Form to permits@indot.in.gov.

Other Indiana DOT Surety Bonds in Indiana

Blanket Highway Permit - Driveway - MAILBlanket Highway Permit - Miscellaneous / Other - MAILBlanket Highway Permit - Right of Way - MAILSingle Highway Permit - BroadbandSingle Highway Permit - DrivewaySingle Highway Permit - MiscellaneousSingle Highway Permit - OtherSingle Highway Permit - Right of Way

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