Right of Way Bond - City of Virginia Beach, VA in Virginia

Brief Summary

A Virginia Beach right of way permit is not issued until the city has security in hand. A surety bond covers that requirement without tying up cash in a guarantee deposit, and the city's own Right of Way Permit bond forms are ready to execute once the amount is set by the approved engineer's cost estimate.

The City of Virginia Beach requires a permit for any activity within a city owned right of way or easement. Under City Code Chapter 33, the permit holder posts a guarantee sized to the estimated cost of completing the work and restoring the street, and the city may accept a bond in place of that cash deposit. Separately, Sec. 33-55 requires $500,000 in general liability insurance or an indemnity bond before any permit is issued.

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How to Apply for a Right of Way Bond:

• Submit the Utility and Right of Way Permit application with traffic control plans, site sketches and the subcontractor attachment.
• Complete the Engineer's Cost Estimate for Public Rights of Way and Easements and get Development Services Center approval.
• Request a bond for the approved estimate on the city's Right of Way Permit bond form matching your entity type.
• Provide proof of $500,000 general liability insurance, or post an indemnity bond for that amount under Sec. 33-55.
• Pay the permit, inspection and technology fees before the permit issues.
• Report completion to the city and keep the bond in force until the city approves the work.

Detailed Information About the Virginia Right of Way Bond:

What the bond covers

Virginia Beach City Code Sec. 33-51 makes it unlawful to perform work on, under or over a street, or work that affects a street, without a permit. The permit comes with obligations set out in Sec. 33-63: backfill compacted to 95 percent density, pavement cuts restored to their former dimensions, cross section and profile, and the street returned to a condition consistent with adjoining sections. The permittee also agrees to repair any sinks in the backfill or pavement that appear within one year after the work is completed.

How the amount is set

There is no single flat bond amount for most right of way work. The fee schedule in Sec. 33-71 calls for a guarantee deposit per estimate on work of a continuing nature, on logging roads, tram roads and temporary entrances, and on all other work not listed separately. Sec. 33-74 says the guarantee must be enough to cover the estimated cost of completing the work or restoring the street if the permit holder fails to do so. Sec. 33-73 lets the city manager or a designee accept a bond in lieu of that guarantee fee.

The estimate comes from the Engineer's Cost Estimate form for Public Rights of Way and Easements, which the Development Services Center must approve before it accepts surety. Once the figure is approved, the bond is written for that amount on the city's Right of Way Permit bond form for a corporation, individual or partnership.

The $500,000 liability requirement

Sec. 33-55(b) adds a second requirement. Before any permit is issued, the applicant must provide proof of general liability insurance or a bond indemnifying the city against injury or damage to persons or property arising from the permitted work, in the amount of $500,000 combined single limit per occurrence. Most contractors satisfy this with their liability policy. Those who do not carry it can post the bond instead.

Contractors on government projects

When a contractor performs work on a government project, Sec. 33-62 requires the permit to be issued in the contractor's name. The contractor is responsible for the inspection and guarantee fees and must give evidence of the liability insurance or bond required by Sec. 33-55.

Fees that come with the permit

The permit fee under Sec. 33-71 is $100 for most work, $500 for a blanket permit and $35 for a single or two family driveway apron. Inspection on continuing work and all other work is 1.5 percent of construction cost with a $50 minimum. A $10 technology fee under Sec. 33-72 is added to each permit. Fees are paid before the permit issues.

Getting the guarantee back

Under Sec. 33-75, when the work is completed and approved, the city returns the guarantee after deducting inspection fees and any other deductions allowed by the article. For a bond posted in lieu of the deposit, confirm the release steps with the Development Services Center, which manages sureties for private development in the city.

Premium

The premium is a percentage of the bond amount set by the surety after reviewing the principal's credit, financial strength and experience with similar work. Larger bonds and weaker files may require financial statements. Confirm the current form and filing steps with the Development Services Center before the bond is issued.

Eligibility and Requirements for a Virginia Right of Way Bond:

• City of Virginia Beach named as obligee.
• Bond amount equal to the approved estimated cost of completing the work and restoring the street.
• Correct city form for a corporation, individual or partnership principal.
• Principal name matching the permit application, or the contractor's name on government projects.
• Surety credit review of the principal.

Virginia Right of Way Bond FAQs:

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