What is a Florida Right of Way Surety Bond?
A Florida Right of Way Surety Bond is typically required when work is to be performed in a municipality’s right of way, easements, or on public roads. These bonds are usually required when a developer seeks to connect their development with a public road. In most cases, right of way bonds are required prior to getting a permit to perform work in the right-of-way.
Who needs a Florida Right of Way Surety Bond?
Right of way surety bonds are required by the developer, not the contractor performing the work. It’s a little confusing because the developer often tries to pass the bond requirement to the contractor. The question is why would the developer have to provide a surety bond when a contractor is the one performing the work? Much like a subdivision bond, the entities who ask for right of way bonds are looking to ensure the performance of the developer not the contractor. However, the developer can ensure the contractor completes the work and avoid liens by requiring it to bond back to developer using performance and payment bonds.
Who requires a Florida Right of Way Surety Bond?
The entities listed below often ask for right of way bonds:
- Florida Department of Transportation
- Jacksonville Right of Way Bond
- Pasco County Right of Way Bond
Don’t see your surety bond listed? Call 386-316-2547 and one of our agents will assist you with your request.
Why do I need a Florida Right of Way Surety Bond?
Right of way bonds are required to ensure improvements to a road, easement, or right of way are completed according to the permit application. The surety bond provides protection to the obligee (entity requiring the bond) when a developer fails to make the proper improvements. Once declared in default, these bonds can provide funds to complete the improvements or return the property to its original form.
How much does a Right of Way Bond Cost?
The right of way surety bond cost varies depending on a number of factors. These bonds are considered completion bonds which are a riskier bond type than most other bonds. However, well-qualified applicants can expect a rate of 1-2% of the surety bond amount needed in most cases.
How do I apply for a Florida Right of Way Bond?