Highway Permit ($20,000) Bond - City of Kentwood, MI in Michigan

Brief Summary

Kentwood will not issue a highway permit for work in its streets until an original $20,000 surety bond and a certificate of insurance are on file with the Engineering Department. Contractors file the bond once a year and then pull permits against it as jobs come up, so one bond covers a full season of street openings, borings and utility crossings in the city right of way.

The City of Kentwood requires a $20,000 surety bond from contractors who want highway permits for work in the public right of way. Section 54-173 of the city Right-of-Way Ordinance and Section 2 of the Specifications and Conditions for Highway Permits both say the bond is filed with the City each year. The City of Kentwood is the obligee, and the original bond goes to the Engineering Department with a copy of the insurance certificate before any permit is issued.

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How to Apply for a Highway Permit ($20,000) Bond:

• Confirm the work is in the Kentwood right of way and is not being done under a City contract, which is the one exemption in Section 54-174(a).
• Apply for the $20,000 bond in the contractor's exact legal name, naming the City of Kentwood as obligee.
• Obtain a certificate of liability insurance naming the City of Kentwood as additional insured.
• File the original bond and a copy of the insurance certificate with the Engineering Department at City Hall, 4900 Breton Ave SE, before the first permit is issued.
• Submit the ROW Permit Application and pay the fee, for example $800 for an underground open cut ($300 base plus $500 escrow) plus time and materials, $100 for a utility hook-up that crosses the road, or $50 plus $0.40 per foot for utility boring.
• Give the Engineer 48 hours notice before starting, and keep the permit and specifications on site with the foreman.
• Renew the bond each year to keep pulling permits.

Detailed Information About the Michigan Highway Permit ($20,000) Bond:

The bond is annual, not per job

Most contractors expect to buy a bond for each Kentwood permit. The city works the other way. Section 54-173 of the Right-of-Way Ordinance (Ordinance No. 7-05, adopted April 5, 2005) requires an original surety company bond of $20,000, conditioned on performance of the permit conditions and compliance with the law, in a form pre-approved by the City, filed each year by contractors desiring to obtain permits through the year. The city's Specifications and Conditions for Highway Permits repeat the same $20,000 annual requirement in Section 2.

The Engineering Department's Working in the Right of Way page also posts an older $10,000 form titled Bond for Highway Permits. The ordinance and the current specifications both call for $20,000, so confirm with Engineering which form it wants on file before the bond is issued.

What work needs a highway permit

Under Section 54-174, all construction work in the public right of way, and any use of the right of way that may impede it or vehicle traffic, requires a permit. Section 54-176 adds that no one may make an excavation or opening in or under a street without a written permit from the Director of Public Works, and no permit is granted until the applicant posts a cash deposit or bond and files a certificate of insurance. That covers open cuts, trenching, boring and jacking under the roadbed, and utility service connections.

Work done under a City contract does not need a permit under Section 54-174(a). Section 54-172 also leaves out temporary obstructions incidental to moving articles to and from abutting property and lawful parking. In an emergency, Section 54-177 lets the Director allow an opening immediately, but the permit still has to be obtained the next business day.

What the bond guarantees

The city's $20,000 bond form, titled Bond to Accompany Application for Permit, names the City of Kentwood as obligee. It guarantees that the contractor will do the work in a careful, secure, skillful and workmanlike manner, restore the street and right of way to as good a condition as before, comply with Michigan statutes, city ordinances and the permit terms, pay all bills, and hold the City, its employees and elected officials harmless from claims.

Rules that trip contractors up

The Engineer must get 48 hours notice before any permitted work starts, and street openings may not begin on a Saturday, Sunday, holiday or the day before a holiday. Tunneling is not allowed and pavement crushers are prohibited. Backfill in the traveled way goes in 6 inch lifts compacted to 95 percent Proctor. Starting without a permit doubles the fee under Section 24 of the specifications, and Section 54-174 sets it at 200 percent of the standard fee.

Eligibility and Requirements for a Michigan Highway Permit ($20,000) Bond:

• Bond amount of $20,000 under Section 54-173 of the Kentwood Right-of-Way Ordinance.
• City of Kentwood named as obligee, on a form pre-approved by the City.
• Original bond, not a copy, filed with the Engineering Department.
• Liability insurance of at least $500,000 public liability and $200,000 property damage under Section 54-173, with the City as additional insured.
• Separate permits from the sewer and water authorities where the work involves their facilities, per Section 3 of the specifications.
• Premium is set by the surety after reviewing the contractor's credit, financial strength and experience with right of way work. The executed bond is issued once the premium is paid.

Michigan Highway Permit ($20,000) Bond FAQs:

Official and Additional Resources for the Michigan Highway Permit ($20,000) Bond: