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Expert Surety Bonds Since 2004
Need assistance? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Expert Surety Bonds Since 2004
TDOT will not execute a vegetation control permit until the bond is on file, and the amount is $5,000 for each separate permit. A sign company clearing sight lines at several boards can post one running surety bond sized for every active permit instead of buying a new bond each time.
Tennessee requires a surety bond before TDOT executes a permit to cut, trim or remove vegetation on state highway right-of-way next to a permitted off-premise outdoor advertising sign. Under Tenn. Comp. R. & Regs. 1680-06-03-.08 the bond is $5,000 for each separate vegetation control permit and $2,500 for each separate vegetation maintenance permit, on a form provided by the Department, with the Tennessee Department of Transportation as obligee. A running surety bond can cover several active permits at once.
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The most common mistake is treating this as one bond per company. Rule 1680-06-03-.08 sets the bond at $5,000 for each separate vegetation control permit and $2,500 for each separate vegetation maintenance permit. If you will have more than one permit open at a time, the rule lets you post a running surety bond that covers multiple active permits at the applicable amount for each permit, up to the maximum capacity of the bond. Size the running bond for the most permits you expect to have open at once.
No one may cut, trim or remove vegetation on the right-of-way next to an outdoor advertising device without a vegetation control permit, and the sign must already hold an outdoor advertising permit. TDOT's instructions say only the permitted sign owner may apply. A contractor or agent may do the work and provide the bond and insurance if the contractor is listed on the application and the permittee signs it.
The rule sets a $100 nonrefundable application fee per sign face and a $150 supervision fee per sign face on approval. TDOT's instructions list a $50 application fee for a vegetation maintenance permit. A certificate of general liability insurance of at least $300,000 for each person injured and $1,000,000 for each occurrence is also required, with TDOT as certificate holder. The work must be completed within one year after the application is approved. If replacement vegetation is required, the permit may be issued only between October 1 and April 15.
TDOT publishes two forms, a single Surety Bond and a Running Surety Bond, both payable to the Tennessee Department of Transportation and conditioned on the permittee following every condition of the permit. The single bond stays in force until written release is received from the Department. A surety can end a running bond with written notice by certified mail, effective 30 days after receipt, but it stays liable for permits issued before that date. TDOT's instructions also accept a cashier's check, certified check or money order in place of a surety bond.
The rule cites T.C.A. 54-21-111, 54-21-116 and 54-21-117 as its statutory authority.
$5,000 for each separate vegetation control permit and $2,500 for each separate vegetation maintenance permit, under Tenn. Comp. R. & Regs. 1680-06-03-.08.
Not necessarily. The rule allows a running surety bond that covers multiple active control or maintenance permits at the applicable amount for each permit, up to the maximum capacity of the bond.
Yes, if the contractor is listed on the application and the permitted sign owner signs it. Only the sign owner may apply for the permit.
TDOT's instructions require it through the 45-day duration of the executed permit and until the work is completed. The single bond form stays in force until TDOT gives a written release.
If replacement vegetation is required, the rule allows the vegetation control permit to be issued only between October 1 and April 15.
The surety looks at the applicant's credit, the bond amount and, for a running bond, its total capacity. You see the quoted premium before you buy.
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