Encroachment (Contractor Only - Form R/W 16A) Bond - North Carolina DOT in North Carolina

Brief Summary

Form R/W 16A puts the installing contractor on the hook with NCDOT instead of the utility, developer or town that signed the encroachment agreement. The amount is already printed in the approved encroachment package, so the quote matches exactly what NCDOT asked for and the bond can be issued on the current July 2024 form.

NCDOT may require a performance and indemnity bond before it grants a permit for work in state highway right of way. Form R/W (16A) is the corporate surety bond in which the principal is the contractor for the second party to the encroachment agreement. The obligee is the North Carolina Department of Transportation, the required amount is typically shown in the approved encroachment agreement package, and G.S. 136-93 gives NCDOT authority to set it.

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How to Apply for a Encroachment (Contractor Only - Form R/W 16A) Bond:

• Get the approved encroachment agreement package and note the bond amount it shows.
• Confirm your company is the contractor for the second party to the agreement, which is who Form 16A is written for.
• Have the encroachment agreement details and the second party's name ready for the bond application.
• Complete the bond application and review the quote.
• Execute Form R/W (16A) with officer signature and attestation, plus the surety's power of attorney and certificate of authority.
• Submit the bond as the approved encroachment package or the NCDOT Encroachments Office directs.

Detailed Information About the North Carolina Encroachment (Contractor Only - Form R/W 16A) Bond:

Form 16, 16A or 16B

NCDOT lists three bond options for encroachments. Form 16 is a corporate surety bond for the second party to the encroachment agreement itself, and its footer says it is to be used only by that party. Form 16A is a corporate surety bond in which the principal is the contractor for the second party to the encroachment agreement. Form 16B is a continuing indemnity bond. If your company is the installer hired by the party that signed the agreement, 16A is the form written for you. Using Form 16 in that situation puts the wrong party on the bond.

How the amount is set

G.S. 136-93 lets NCDOT, before granting a permit for work on a state road, require a bond payable to the State of North Carolina in an amount the Department deems sufficient. NCDOT's encroachment page says the required bond amount is typically shown in the approved encroachment agreement package. Read the package before you request a quote.

What the bond guarantees

The 16A obligation is void only if the principal installs the encroaching facilities in accordance with the Utilities Accommodations Manual and the other provisions of the encroachment agreement. NCDOT describes the purpose of encroachment bonds as indemnifying the Department for damage within the highway right of way caused by the installation. G.S. 136-93 adds that the entire expense of putting the highway back in as good condition as before is paid by the permit holder or by whoever does the work.

Release takes at least a year

NCDOT says bonds are eligible for release a minimum of one year from the date of satisfactory completion of the work. Release starts with a written request, NCDOT performs a final inspection, and the release is authorized if the work is satisfactory. Expect the bond to stay in force at least that long.

Signing the form

Form R/W (16A), revised July 2024, calls for the principal to sign through an officer such as the President or Vice President with attestation by the Clerk or Secretary, and for the surety to sign through its attorney in fact with the power of attorney and certificate of authority attached.

Eligibility and Requirements for a North Carolina Encroachment (Contractor Only - Form R/W 16A) Bond:

• Obligee: the Department of Transportation, an agency of the State of North Carolina.
• NCDOT Form R/W (16A), revised July 2024.
• Bond amount as shown in the approved encroachment agreement package.
• Installation performed to the Utilities Accommodations Manual and the encroachment agreement provisions.
• Bond kept in place until NCDOT authorizes release, no sooner than one year after satisfactory completion.

North Carolina Encroachment (Contractor Only - Form R/W 16A) Bond FAQs:

Official and Additional Resources for the North Carolina Encroachment (Contractor Only - Form R/W 16A) Bond: