Right of Way Permit Bond - Bay County, MI in Michigan

Brief Summary

Bay County Road Commission right of way permits are issued online through Oxcart, and the bond is often the last item holding up approval. We write it on the Road Commission's Bond for Work in the Right of Way form for the amount the permit calls for, and most contractors are quoted the same day.

Anyone doing work within the right of way of a Bay County road, other than sidewalk installation and repair, needs a permit from the Bay County Road Commission under Michigan Compiled Laws 224.19b, and the Road Commission uses its own Bond for Work in the Right of Way form to secure that work. The bond amount is set by the Road Commission for the work being permitted, and for telecommunication and video providers state law caps it at one bond of no more than $20,000 in a county of Bay's population.

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How to Apply for a Right of Way Permit Bond:

• Set up an account in Oxcart Permits and start the Bay County Road Commission right of way permit application.
• Confirm the bond amount the Road Commission requires for the work, or the statutory limit if you are a telecommunication or video provider.
• Complete the bond application with the legal name exactly as it appears on the permit application.
• Pay the premium and receive the executed bond on the Road Commission's Bond for Work in the Right of Way form.
• Provide the certificate of insurance required by the Road Commission's right of way insurance requirements.
• Submit the bond and insurance with the permit as the Road Commission directs, and pay the permit fee by charge card after approval.

Detailed Information About the Michigan Right of Way Permit Bond:

Who is the obligee

This bond runs to the Bay County Road Commission, not to the State of Michigan or the Secretary of State. Section 19b of the county road law, MCL 224.19b, says a person, partnership, association, corporation or governmental entity shall not construct, operate, maintain or remove a facility or perform any other work within the right of way of a county road, except sidewalk installation and repair, without first obtaining a permit. The Road Commission publishes a Bond for Work in the Right of Way form along with its general permit rules, right of way fee schedule and insurance requirements on its permit forms and rules page.

How the permit is applied for

Since May 3, 2021 the Road Commission has issued right of way and transportation permits only through the web based Oxcart Permits system. Paper, emailed and faxed applications are no longer accepted. Permit fees are paid by charge card after approval, and Oxcart adds its own convenience and card processing charges. The permit agent can be reached at permitagent@baycountyroadmi.gov or 989-686-4610, option 3, at 2600 E. Beaver Road, Kawkawlin.

How much the bond is

The Road Commission sets the bond amount for the work covered by the permit, so confirm the current form and amount with the permit agent before the bond is issued. Telecommunication and video providers get a statutory limit. MCL 224.19b(9) says a road commission shall not require a provider to have more than one security bond or right of way bond, and that the bond may not exceed $20,000, or $40,000 in a county with a population over 250,000. The Census Bureau's July 1, 2025 estimate puts Bay County at 102,123 people, so the $20,000 limit applies here. A provider may post an irrevocable letter of credit instead, and the Road Commission has to return the bond within 120 days after the provider completes construction work.

What the bond guarantees

The bond guarantees that the permit holder will do the work according to the permit and the Road Commission's rules and will restore the road, shoulder, ditch or other right of way it disturbs. If the permittee does not, the Road Commission can recover its cost from the bond, and the permittee repays the surety.

How the premium is set

The surety prices the bond on the principal's credit, experience with road and utility work, and the bond amount the permit requires. The premium is quoted once the amount is known.

Eligibility and Requirements for a Michigan Right of Way Permit Bond:

• Bay County Road Commission named as obligee.
• Bond amount set by the Road Commission for the permitted work.
• For telecommunication and video providers, no more than one bond and no more than $20,000 under MCL 224.19b(9).
• Principal name matching the Oxcart permit application.
• Insurance meeting the Road Commission's right of way insurance requirements.

Michigan Right of Way Permit Bond FAQs:

Official and Additional Resources for the Michigan Right of Way Permit Bond: