Surety Bond Encyclopedia

Road Opening Permit ($5,000) Bond - Township of Lyndhurst, NJ in New Jersey

Brief Summary

Lyndhurst holds road opening security for months after the job closes. A surety bond keeps that money in your business instead of in a certified check sitting with the Township, and it is accepted in place of the cash deposit under the Township's road opening ordinance.

Anyone opening, boring or tunneling under a street right of way in the Township of Lyndhurst needs a road opening permit from the Township Clerk and must post security for restoration. Under Lyndhurst Code section 14-4.9 a surety bond from an applicant other than a public utility must be at least $1,000, and this listing is written at $5,000. Applicants also need $1,000,000 in liability insurance.

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How to Apply for a Road Opening Permit ($5,000) Bond:

Confirm the street was not built, rebuilt or repaved in the last three years, unless the work is an emergency.
Apply to the Lyndhurst Township Clerk for a road opening permit with the location, width, length and depth of the excavation.
Confirm with the Township the bond amount for your job.
Owner name, home address and Social Security number for the credit review.
Pay the premium and file the executed bond with the permit application.
Provide a certificate of insurance with at least $1,000,000 single limit and pay the application fee and escrow deposit.

Detailed Information About the New Jersey Road Opening Permit ($5,000) Bond:

The amount follows the size of the opening

Lyndhurst does not use one flat bond figure for everyone. Section 14-4.10 builds the restoration security from the job itself. For paved areas, curb, gutter, sidewalk and driveways it is a $25 base charge plus $15 for each square yard of trench opened, $5 for each square yard of paving and $7 for each linear foot of curb. Shoulders and roadside areas run $25 plus $5 per square yard of trench. Boring or tunneling under the road is $25 plus $1 per linear foot. Section 14-4.9 says a surety bond from an applicant other than a public utility must be at least $1,000. This listing is the $5,000 Lyndhurst road opening bond. Confirm with the Township the amount it wants for your job before the bond is issued.

Who needs a permit

Section 14-4.3 says no person, corporation or utility, public or private, may open, tear up, excavate, bore, tunnel or drive under any street right of way in the Township without a road opening permit from the Township Clerk. Work done by the Township, or under a Township contract for water lines, sewer lines or street improvements, does not need one. Under section 14-4.4, every applicant except a private homeowner must be a contractor licensed by the State of New Jersey or an agent of a public utility.

A street that was constructed, reconstructed or repaved within the last three years cannot be opened unless there is an emergency such as a gas leak, water main leak or sewer break.

Insurance and how long the security is held

Applicants must show the Township Attorney insurance with limits of not less than $1,000,000 single limit. For ordinary openings the Township keeps the security for six months after satisfactory completion of all work. For extensive openings it can be held up to one year from completion. Public utilities may instead file an annual corporate bond of at least $50,000.

Fees

The nonrefundable application fee starts at $25 for the first five linear feet by three feet wide, with added charges for longer openings and $75 for an extensive opening. Boring, tunneling or driving under the road is a $75 minimum. An escrow deposit starting at $200 covers engineering and legal review. Public utilities may pay $1,000 a year in place of individual application fees.

Eligibility and Requirements for a New Jersey Road Opening Permit ($5,000) Bond:

New Jersey licensed contractor or public utility agent, unless you are a private homeowner.
Township of Lyndhurst named as obligee.
Surety bond of at least $1,000 under section 14-4.9, written at $5,000 on this listing.
Liability insurance of not less than $1,000,000 single limit, acceptable to the Township Attorney.
Bond kept in force through the retention period after the work is completed.

New Jersey Road Opening Permit ($5,000) Bond FAQs:

How much bond does Lyndhurst require?

The security is figured from the size and type of opening under section 14-4.10, and section 14-4.9 sets a $1,000 minimum for a surety bond from anyone other than a public utility. This listing is written at $5,000. Confirm the figure for your job with the Township before the bond is issued.

Can a homeowner apply?

Yes. Section 14-4.4 requires applicants to be New Jersey licensed contractors or public utility agents, but private homeowners are excepted.

How long does the Township hold the security?

Six months after satisfactory completion for an ordinary opening, and up to one year from completion for an extensive opening.

Can I open a street that was just repaved?

Not within three years of construction, reconstruction or repaving unless an emergency exists. Gas leaks, water main leaks and sewer breaks count as emergencies.

What do utilities post?

A public utility may file an annual corporate bond of at least $50,000, renewed each year, and may pay a $1,000 annual fee in place of individual application fees.