Surety Bond Encyclopedia

Right of Way Permit ($5,000) Bond - City of Forest Grove, OR in Oregon

Brief Summary

The $5,000 figure is the floor, not the ceiling. Forest Grove sizes its right of way performance bond to the cost of the work in the street, with $5,000 as the minimum, and a surety bond covers that requirement for an annual premium instead of a cash deposit.

The City of Forest Grove requires a performance bond before a developer or contractor starts excavation work in the public right of way or a public easement. The bond must equal the cost of the construction improvements within the right of way, but never less than $5,000, and it carries a one year surety after the City accepts the work. The City of Forest Grove is the obligee.

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How to Apply for a Right of Way Permit ($5,000) Bond:

  • Confirm your work involves excavation in the public right of way or a public easement.
  • Prepare improvement plans for City review.
  • Determine the cost of construction improvements in the right of way to set the bond amount, with $5,000 as the minimum.
  • Complete the bond application in the exact name used on the permit application.
  • Pay the premium and receive the executed bond naming the City of Forest Grove as obligee.
  • Submit the bond, insurance certificates and permit application to Forest Grove Engineering and pay the permit fee.

Detailed Information About the Oregon Right of Way Permit ($5,000) Bond:

The $5,000 is a minimum

Forest Grove's Engineering FAQ, which points to City Code section 151.047, says the performance bond must be equal to the amount of construction improvements within the right of way, but not less than $5,000. Small jobs such as a single drive approach or a short sidewalk section usually land at the $5,000 minimum. Larger public facility work will need a bond sized to the improvement cost.

Who needs it

An Excavation Permit is required for any work within the public right of way or easement that involves excavation. That includes installing concrete drive approaches or sidewalks, and connecting to or constructing public facilities. Developers and contractors must post the bond before starting work.

The bond runs past the finish line

The City requires a one year surety after it accepts the work. Plan for the bond to stay in force through that warranty year, not just through construction. If the work fails or the street is not restored properly in that window, the City can make a claim against the bond.

Insurance is a separate requirement

The bond does not replace insurance. Before work starts the City also requires public liability insurance of at least $100,000 per person and $300,000 per accident, and property damage insurance of at least $100,000, with the City of Forest Grove named as an additional insured on both.

Filing and cost

Submit improvement plans, the performance bond, proof of insurance and the permit application to the City Engineering office. The permit fee is set by Council resolution and listed on the Engineering fee schedule. Your bond premium is set by the surety based on the bond amount and the credit and experience of the contractor. Confirm the current bond form and filing steps with Forest Grove Engineering before the bond is issued.

Eligibility and Requirements for a Oregon Right of Way Permit ($5,000) Bond:

  • Performance bond equal to the cost of improvements within the right of way, not less than $5,000.
  • One year surety after the City accepts the work.
  • Public liability insurance of at least $100,000 per person and $300,000 per accident.
  • Property damage insurance of at least $100,000.
  • City of Forest Grove named as additional insured on both insurance policies.

Oregon Right of Way Permit ($5,000) Bond FAQs:

Is the bond always $5,000?

No. $5,000 is the minimum. The bond must equal the cost of construction improvements within the right of way when that cost is higher.

What work needs this permit and bond?

Any work in the public right of way or easement that involves excavation, including concrete drive approaches, sidewalks, and connecting to or building public facilities.

How long does the bond need to stay in force?

Through construction and for one year after the City accepts the work.

Does the bond take the place of insurance?

No. The City also requires public liability and property damage insurance naming the City as an additional insured.

What does the bond cost?

You pay a premium set by the surety based on the bond amount and the credit and track record of the contractor or developer.

Official and Additional Resources for the Oregon Right of Way Permit ($5,000) Bond:

All Oregon Right of Way bonds · All City of Forest Grove, OR bonds · All Oregon surety bonds