Surety Bond Encyclopedia

Right of Way Bond - City of Missouri City, TX in Texas

Brief Summary

The Missouri City right of way bond is not a token amount. For any work that cuts pavement or digs within five feet of it, the city code sets the bond at 120 percent of the original construction cost, and the bond has to stay in force until the city accepts the work after a one-year maintenance period. Size it correctly and keep it long enough, and the permit goes through without a second round.

Missouri City requires a performance or assurance bond before it issues a permit for work in the city right of way. Under Missouri City Code Sec. 46-20, the bond is 120 percent of the original construction cost for work requiring street, sidewalk or pavement excavation, or excavation within five feet of pavement, and $2,000 for residential driveways, street tree planting or other work. The bond is issued in the name of the City of Missouri City, filed with the Right of Way Use Permit Application, and maintained until the city accepts the work after the one-year maintenance period.

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How to Apply for a Right of Way Bond:

  • Classify the work. Pavement excavation, or excavation within five feet of pavement, uses the 120 percent of construction cost bond. Driveways, street trees and other work use $2,000.
  • Get the original construction cost from your contract or estimate to size the bond.
  • Have the bond issued in the name of the City of Missouri City as obligee.
  • Request a term that runs through the one-year maintenance period and the city's acceptance of the work.
  • Submit the bond with the Right of Way Use Permit Application and the $200 initial submittal fee.
  • Do not start work before the permit is issued. Fees double if you do.

Detailed Information About the Texas Right of Way Bond:

Two amounts, set by the kind of work

Missouri City Code Sec. 46-20(f) sets the bond amount:

  • Work requiring street, sidewalk or pavement excavation, or excavation within five feet of pavement: 120 percent of the original construction cost
  • Residential driveways, street tree planting or other work: $2,000

The city's Right of Way Use Permit Application also says the contractor must provide a construction bond equal to or greater than the cost of construction. For pavement work, the code figure of 120 percent is the one to plan around.

What the bond covers and how long it runs

Sec. 46-20(e) requires a good and sufficient bond of performance or assurance, approved by the city and kept on file, conditioned that the applicant will promptly adjust, pay and settle all legitimate claims for damages. It also covers the cost of repairs in or upon the street, sidewalk or other public place where the work is done. The bond must be maintained until the city accepts the work after the expiration of the one-year maintenance period. The permit application describes this as a bond good for one year of construction and maintenance, issued in the name of the City of Missouri City. The code also lets the city allow a right of way user to self-insure the obligation upon evidence satisfactory to the city.

Who needs a permit, and who does not

The city uses a Right of Way Use permit for smaller projects such as utility work, irrigation, signs, landscaping, walls, fences and minor driveway connections, and a Major Construction Improvement permit for large projects. Under Sec. 46-31(c), no permit is required for repair, replacement or maintenance of infrastructure lawfully in the right of way when it involves no digging, cutting, excavation, drilling or tunneling, for work performed for the city under a city contract, or for installing a sign in the right of way under a city sign permit.

Fees and filing

The bond is submitted with the application. The application lists an initial submittal fee of $200, additional submittals at $50, a first re-submittal at $100, signs at $50 and poles at $200. Fees are doubled when work starts before the permit is issued. The permit application form was last updated in January 2023. Contact the City of Missouri City at 1522 Texas Parkway, 281-403-8500, to confirm the current form before the bond is issued.

Eligibility and Requirements for a Texas Right of Way Bond:

  • Performance or assurance bond approved by the city and kept on file under Sec. 46-20(e).
  • Bond conditioned on paying legitimate damage claims and the cost of repairs to the street, sidewalk or public place.
  • Commercial general liability and automobile liability insurance of $500,000 per occurrence, with the city named as additional insured.
  • Workers compensation insurance at statutory limits.
  • Compliance with the Missouri City Code and the city's Infrastructure Standards Manual.
  • Underwriting review of the contractor. Credit, experience and the size of the bond shape the premium.

Texas Right of Way Bond FAQs:

How much is the Missouri City right of way bond?

Under Missouri City Code Sec. 46-20(f), it is 120 percent of the original construction cost for work requiring street, sidewalk or pavement excavation, or excavation within five feet of pavement. Residential driveways, street tree planting and other work need a $2,000 bond.

Can the bond be cancelled when construction is finished?

No. The code requires the bond to be maintained until the city accepts the work after the one-year maintenance period expires. Plan the bond term around that, not the construction schedule.

Can we self-insure instead of posting a bond?

Sec. 46-20(e) lets the city allow a right of way user to self-insure the obligation upon evidence that satisfies the city. That decision belongs to the city, so anyone without written approval should plan on posting the bond.

Is a permit needed for every job in the right of way?

No. Sec. 46-31(c) exempts repair, replacement or maintenance of existing infrastructure that involves no digging, cutting, excavation, drilling or tunneling, work done for the city under a city contract, and sign installation under a city sign permit.

Who is the obligee?

The City of Missouri City. The permit application states that the bond must be issued in the city's name and submitted with the application.

Official and Additional Resources for the Texas Right of Way Bond:

Right of Way in Other Texas Locations

Galveston, TXHarris County, TXOrchard Lakes Estates Homeowners Association

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