Highway Restoration and Maintenance (Individual Permit) Bond - Statewide in Pennsylvania
Table of Contents
Brief Summary
There is no fixed dollar amount for this bond. PennDOT's district office works out the restoration security on its own computation sheet, Form M-945J, and the bond is written for that figure on Form M-945K. Bring us the computed amount and the permit details and the bond can be issued on the prescribed form, ready to go back to the district permit office.
The Pennsylvania Department of Transportation may require security before issuing a highway occupancy permit when the permittee will perform a substantial amount of work in the state highway right of way. Under 67 Pa. Code 459.5 one accepted form of that security is an individual or blanket Highway Restoration and Maintenance Bond on Form M-945K naming the Commonwealth as obligee, guaranteeing restoration and maintenance of the highway for at least 2 years after acknowledged completion of the work.
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How to Apply for a Highway Restoration and Maintenance (Individual Permit) Bond:
- Apply for the highway occupancy permit through PennDOT's ePermitting System.
- Obtain the restoration security amount the district office computes on Form M-945J.
- Have the bond written on Form M-945K for that amount, naming the Commonwealth of Pennsylvania as obligee.
- Return the executed bond to the district permit office before the permit issues.
- For pavement or shoulder openings over 500 linear feet, submit preconstruction photodocumentation at least 15 days before work begins.
- Notify the district office in writing when the permitted work is complete.
- If the permit is extended, extend the bond to match and provide evidence to the Department.
Detailed Information About the Pennsylvania Highway Restoration and Maintenance (Individual Permit) Bond:
The amount comes from PennDOT, not a statute
Most people shopping for this bond expect a set dollar figure. There is not one. Section 459.5 of Title 67 of the Pennsylvania Code gives the Department discretion to require an agreement, security or both when a permittee will be authorized to perform a substantial amount of work within the right of way. PennDOT's forms list pairs the Highway Restoration and Maintenance Bond, Form M-945K, with a Computation Sheet for Highway Restoration Security, Form M-945J. The district permit office uses the computation sheet to set the security for the specific permit, and the bond is written for that amount.
Individual permit versus blanket
Section 459.5 allows the bond to be individual or blanket. The individual version on this page covers the restoration and maintenance obligations of one highway occupancy permit. A permittee with a steady volume of work on state highways may carry a blanket bond instead. Either way the Commonwealth of Pennsylvania is named as obligee and the bond is executed by the permittee.
What the bond guarantees
The security guarantees restoration and maintenance of the highway for a period of at least 2 years after the acknowledged completion of the permitted work. That means the obligation outlasts the construction itself. The permittee must notify the district office in writing when the work is complete, and the two year clock runs from PennDOT's acknowledgment of that completion.
Extensions and alternatives
Permits are valid for 6 month periods or multiples of 6 months. A time extension must be requested in writing within 30 days of expiration, and any extension also requires a matching extension of the bond, insurance or other security, with evidence given to the Department. In place of the M-945K bond, Section 459.5 also accepts an irrevocable letter of credit on Form M-945L, an assignment of cause of action on Form M-945M when authorized, or an escrow account acceptable to the Department. Confirm the computed amount and current form with the district permit manager before the bond is issued.
Eligibility and Requirements for a Pennsylvania Highway Restoration and Maintenance (Individual Permit) Bond:
- Prescribed PennDOT Form M-945K, Highway Restoration and Maintenance Bond.
- Commonwealth of Pennsylvania named as obligee.
- Bond amount set by the district office using Form M-945J.
- Guarantee of restoration and maintenance for at least 2 years after acknowledged completion.
- Underwriting based on the permittee's credit, financial statements and highway work experience.
Pennsylvania Highway Restoration and Maintenance (Individual Permit) Bond FAQs:
It is set permit by permit. PennDOT's district office computes the restoration security on Form M-945J based on the work in the right of way, and the M-945K bond is written for that amount.
67 Pa. Code 459.5 accepts either. An individual bond covers one permit. A blanket bond covers multiple permits for a permittee with ongoing work on state highways.
The security guarantees restoration and maintenance for at least 2 years after PennDOT acknowledges completion of the permitted work. If the permit is extended, the bond must be extended too.
Yes. Section 459.5 also accepts an irrevocable letter of credit on Form M-945L, an assignment of cause of action on Form M-945M when authorized, or an escrow account acceptable to the Department.
The surety prices the bond on the computed amount, the length of the guarantee, and the permittee's credit, finances and record with highway restoration work.
