Right of Way Bond - Minneapolis, MN in Minnesota

Brief Summary

Minneapolis will not issue an excavation or obstruction permit until construction security is posted, and a surety bond is one of the forms the code accepts. The code lets the city engineer accept a blanket bond covering all of your projects in the city, so one bond can carry a busy crew through a full season of permits instead of tying up cash on every job.

Anyone who wants to dig in, block or place equipment in the Minneapolis public right-of-way must first register with the city engineer under Chapter 429 and then apply for a permit under Chapter 430. Section 430.40 makes the posting of construction security a condition of the permit application. The code does not set a dollar figure. Minneapolis Public Works sets the required amount, so confirm it with the city engineer's office before the bond is written.

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How to Apply for a Right of Way Bond:

• Register with the Minneapolis city engineer under Chapter 429 before applying for any right-of-way permit.
• Provide a certificate of insurance or self-insurance naming the City of Minneapolis as additional insured.
• Confirm the required security amount and acceptable form with Minneapolis Public Works for your permit or project.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the executed bond naming the City of Minneapolis.
• Submit the bond with your excavation, obstruction or street use permit application through the city's ROWay permitting system.

Detailed Information About the Minnesota Right of Way Bond:

Who has to post this bond

Minneapolis regulates its roadways, streets, bicycle lanes and public sidewalks under Title 17 of the Code of Ordinances. Chapter 429 requires every person who occupies or uses the right-of-way, or who wants equipment or facilities located there, to register with the city engineer. Registration includes a certificate of insurance naming the city as additional insured, and the registrant must report any change in its information within 15 days.

Chapter 430 then sets out three permits. An excavation permit covers digging in the right-of-way. An obstruction permit covers hindering free and open passage. A street use permit is a form of obstruction permit for dumpsters and storage containers. Under section 430.40, every permit application requires registration, a completed application with scaled drawings, payment of fees and any prior debts to the city, and the posting of construction security.

What counts as construction security

Section 429.20 lets the city engineer choose among an individual project bond, a cash deposit, security listed or approved under Minnesota Statutes 15.73, subdivision 3, a letter of credit, self-insurance acceptable to the engineer, or a blanket bond for projects within the city. The surety bond on this page satisfies the bond options. Ask Public Works which amount and which form it will accept for your work before you order the bond.

Restoration is where claims come from

Under section 430.70 the city has the first right to restore the pavement after an excavation. If it passes and you restore the right-of-way yourself, you must post construction security when you apply for the excavation permit. If the pavement later settles because of defective work, you owe the city the full cost of correcting it within 30 days of billing, and the city engineer may collect against your security.

Letting the bond lapse costs you the permit

Section 430.160 treats failure to maintain the required security or insurance as a substantial breach. The city engineer issues a written demand, you have 24 hours to respond with an acceptable plan, and otherwise the permit is revoked without a fee refund and you are placed on probation for one year.

Eligibility and Requirements for a Minnesota Right of Way Bond:

• City of Minneapolis named as obligee.
• Principal name on the bond matching the right-of-way registration exactly.
• Bond amount as set by the city engineer for the permit or for a blanket bond covering projects in the city.
• Security kept in force for the life of the permit and any restoration work, since a lapse is grounds for revocation under 430.160.
• Premium set by the surety after reviewing the bond amount, the owner's credit and the contractor's work history.

Minnesota Right of Way Bond FAQs:

Official and Additional Resources for the Minnesota Right of Way Bond: