Surety Bond Encyclopedia

Road Damage Permit Bond - Greenwood Township, PA in Pennsylvania

Brief Summary

A road damage bond in Greenwood Township turns a vague promise to fix the road into a written, enforceable one, which is exactly what the township wants before your loaded trucks start running a posted road. Getting the paperwork right at the start, including the road condition record, is what protects you when the township inspects again at the end.

Greenwood Township can require a hauler to sign an excess maintenance agreement and post security before running vehicles heavier than a posted weight limit on township roads. Under 67 Pa. Code 189.4 the security for a Type 1 or Type 2 permit is $12,500 per linear mile of paved road, $6,000 per linear mile of unpaved road, or $50,000 per linear mile for a road kept below its normal standard, and $10,000 per municipality for a Type 3 permit. Pennsylvania has more than one Greenwood Township, so the bond must name the one that issued your permit.

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How to Apply for a Road Damage Permit Bond:

Confirm the obligee: the Greenwood Township, and county, that posted the road.
Measure the posted mileage on your route and note which segments are paved and which are unpaved.
Walk or drive the road with the township and keep your own dated photos and video of its condition.
Sign the excess maintenance agreement.
Apply for the bond in the amount the township sets and pay the premium.
File the executed bond with the township and keep a copy with the permit.

Detailed Information About the Pennsylvania Road Damage Permit Bond:

The part haulers overlook: the inspections

Most people treat this bond as a one time number. The township treats it as a running account. 67 Pa. Code 189.4(f) calls for the posted road to be inspected before the permit issues and again when the permit ends, and comparing the two is how responsibility for damage gets assessed. PennDOT's Publication 221 guidance tells municipalities to document the road with photos and video before the agreement is signed and to run interim inspections along the way. If damage reaches 75 percent of the security on file, the township may require repairs within 30 days or demand more security. Take your own dated photos on day one.

How much security

The amount comes from 67 Pa. Code 189.4(d):

Type 1 or Type 2 permit, paved road: $12,500 per linear mile
Type 1 or Type 2 permit, unpaved road: $6,000 per linear mile
Any road the township allows to be maintained below a level consistent with its type: $50,000 per linear mile
Type 3 permit: $10,000 for each county or municipality covered

PennDOT may publish revised bonding schedules, so confirm the current figure with Greenwood Township before the bond is written.

The agreement behind the bond

75 Pa.C.S. 4902 lets a township post a road after an engineering and traffic study, issue permits for heavier movements and require security to cover repairs. Chapter 189 conditions the permit on the hauler accepting financial responsibility for excess maintenance. Publication 221 describes the excess maintenance agreement as a contract between the hauler and the municipality, and warns that handshake agreements are not legally binding and cannot be defended in court. The hauler pays all excess maintenance repair costs, either through the township's contractor or its own.

When several haulers share a road

If more than one company runs the same posted road, the haulers may agree among themselves how to divide responsibility. If they cannot agree, the township decides the shares under 189.4(e).

Which Greenwood Township

Pennsylvania has more than one township by this name. Make sure the obligee on the bond is the Greenwood Township, in the right county, that posted the road and issued your permit.

Eligibility and Requirements for a Pennsylvania Road Damage Permit Bond:

Excess maintenance agreement signed by the hauler.
Security of $12,500 per paved mile, $6,000 per unpaved mile or $50,000 per mile for a road kept below standard on Type 1 and Type 2 permits.
Security of $10,000 per municipality on a Type 3 permit.
Performance bond from a surety authorized to do business in Pennsylvania, or a check, bank account or irrevocable letter of credit at the hauler's option.
Additional security or repairs within 30 days if damage reaches 75 percent of the security posted.

Pennsylvania Road Damage Permit Bond FAQs:

Why does the township want photos and video before we start?

Because the final bill depends on the road's condition at the start. 67 Pa. Code 189.4(f) calls for inspections before the permit issues and when it ends, and PennDOT's Publication 221 guidance tells municipalities to document the road with photos and video before the agreement is signed. Keep your own set too.

Can the township ask for more money in the middle of the job?

Yes. If damage reaches 75 percent or more of the security posted, the township may require the hauler to make repairs within 30 days or post additional security.

Two other companies use the same road. Who pays?

The haulers may agree among themselves how to split excess maintenance. If they cannot agree, Greenwood Township decides each share under 67 Pa. Code 189.4(e).

Is a handshake deal with the roadmaster enough?

No. PennDOT's Publication 221 guidance says handshake agreements are not legally binding and cannot be defended in court if a dispute arises. Expect a signed excess maintenance agreement backed by security.

Do deliveries to a business on the posted road need this?

Vehicles going to or from homes, businesses or farms on a posted road are local traffic under 67 Pa. Code 189.3 and may exceed the limit, unless the township gives notice that trucks bound for that destination are likely to damage the road. After that notice they need a permit and security.