Surety Bond Encyclopedia

Right of Way ($5,000) Bond - Town of Medway, MA in Massachusetts

Brief Summary

Medway's $5,000 performance bond is a once a year item tied to your Right of Way contractor license, not a per job deposit. Post it with the yearly license and you can pull street opening permits all season, paying only each job's application fee and refundable deposit.

The Medway Department of Public Works requires a yearly Right of Way contractor license from any person, developer, contractor or subcontractor doing work that affects public property, rights of way, utility easements or town owned utility infrastructure. The license carries a $100 yearly fee, a $5,000 performance bond, general liability, auto and workers' compensation coverage. Each street opening also needs its own permit, fee and deposit.

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

Apply to Medway DPW for the yearly Right of Way contractor license and pay the $100 fee.
Obtain the $5,000 performance bond naming the Town of Medway.
Provide certificates for general liability, auto and workers' compensation with the Town listed as additional insured where required.
Apply for a street opening permit for each job and pay its application fee and refundable deposit.
Notify the Highway Department two business days ahead and file DigSafe at least 72 hours before excavating.
Renew the license and keep the bond in force each year.

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

The bond goes with the license, not the job

Contractors often treat this as a per project bond. Medway DPW's Right of Way License Requirements list a $5,000 performance bond as part of a yearly Right of Way contractor license. The DPW Street Opening Guidelines say all contractors performing work in the public right of way must carry the yearly ROW license and maintain a $5,000 performance bond along with their insurance.

The per job money is separate. Each street opening permit has a nonrefundable application fee and a refundable deposit set by the type of opening.

Who needs the license

The DPW requirements state that no person, developer, contractor or subcontractor shall perform any work affecting public property, rights of way on or off pavement, grounds, utility easements or any town owned utility infrastructure not covered by a separate permit without first obtaining a right of way contractor license. The DPW roadway FAQ adds that work on the pavement, the sidewalk or the grass area off the pavement, including new or rebuilt driveway openings, needs a street opening permit.

License requirements

Yearly license fee: $100
Performance bond: $5,000, with the Town of Medway as obligee
General liability: $1,000,000 and $2,000,000 limits, listing the Town of Medway as additional insured
Auto insurance on vehicles used for transport or job use, listing the Town as additional insured
Workers' compensation per state statute

Street opening permit costs

The application fee is $100 for 0 to 100 square feet plus $1 for each additional foot. Refundable deposits include $400 per service for an opening that does not cross the centerline, $750 per service for one that crosses the centerline, and $700 for each sidewalk opening. Deposits are higher where the road was paved within 60 months.

Moratorium roads

A road section may not be opened for 5 years after reconstruction or overlay except for unavoidable work approved by the director. On those roads the contractor must guarantee the work through a surety determined by the DPW for one year beyond the end of the moratorium.

Before you dig

Give the Highway Department two business days' notice and submit DigSafe at least 72 hours before excavating. General Bylaw Section 13.9 also requires a written agreement to indemnify the Town for permitted work in a public way.

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

Bond amount of $5,000.
Town of Medway named as obligee.
General liability limits of $1,000,000 and $2,000,000 with the Town of Medway as additional insured.
Workers' compensation per state statute.
Confirm the current bond form and filing steps with Medway DPW before the bond is issued.

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

Do I need a new $5,000 bond for every job in Medway?

The $5,000 performance bond is listed as a requirement of the yearly Right of Way contractor license. Each street opening permit then carries its own application fee and refundable deposit.

Who needs the Right of Way license?

Medway DPW requires it from any person, developer, contractor or subcontractor doing work affecting public property, rights of way on or off pavement, utility easements or town owned utility infrastructure not covered by a separate permit.

What does the bond guarantee?

It is a performance bond. It gives the Town of Medway a source of payment if a licensed contractor fails to complete or restore work in the public right of way as the DPW requires.

What are the street opening deposits?

Under the DPW Street Opening Guidelines, examples are $400 per service for an opening that does not cross the road centerline, $750 per service for one that does, and $700 for each sidewalk opening. Higher amounts apply on roads paved within 60 months.

Can I open a recently paved road?

Road sections are under a moratorium for 5 years after reconstruction or overlay. Only unavoidable work approved by the director is allowed, and the contractor must guarantee it through a surety determined by the DPW for one year beyond the end of the moratorium.