Why Is This Bond Necessary?

The bond serves several purposes:

1. Ensures Compliance: Guarantees adherence to city regulations and project permits.

2. Protects the Public: Ensures that municipal property is not permanently damaged or left in disrepair.

3. Safeguards the City: Provides financial assurance that the contractor will complete the project responsibly and repair any damages.

In my observation, this bond demonstrates professionalism and accountability, fostering trust with the city and the public.

Who Needs a Right-of-Way Bond in Lewiston?

You’ll need this bond if you’re engaging in activities that impact the city’s right-of-way, such as:

• Excavation or trenching in public streets or sidewalks.

• Utility installation or repair.

• Construction or modification of driveways that intersect public roads.

• Installing signage or other structures in the right-of-way.

The city’s permitting office will inform you if a bond is required as part of your project approval process.

How Does the Bond Work?

The bond is a three-party agreement:

1. Principal: The contractor or individual obtaining the bond.

2. Obligee: The City of Lewiston, which requires the bond.

3. Surety: The bonding company that issues the bond and guarantees compensation for valid claims.

If the contractor fails to fulfill their obligations—such as repairing damages or completing work to city standards—a claim can be filed against the bond. The surety compensates the city for valid claims up to the bond amount, and the contractor must reimburse the surety for any payouts.

Bond Amount

The required bond amount is typically determined by the City of Lewiston based on the scope and nature of the project. Common bond amounts for right-of-way projects range from $5,000 to $25,000, though larger or more complex projects may require a higher amount.

Cost of the Bond

The cost of the bond, or premium, is a percentage of the total bond amount. Factors influencing the premium include:

• Credit Score: Higher credit scores often result in lower premiums.

• Business Experience: Established contractors with proven track records may qualify for better rates.

• Project Scope: Larger, riskier projects may have higher premiums.

Premiums typically range from 1% to 5% of the bond amount. For example:

• A $10,000 bond might cost between $100 and $500 annually.

How to Obtain a Lewiston City Right-of-Way Bond

1. Verify Requirements: Confirm the bond amount and specific terms with the City of Lewiston’s permitting office.

2. Apply for the Bond: Provide details about your business, project, and financial history to a bonding company.

3. Undergo Underwriting: The surety evaluates your creditworthiness, experience, and financial stability to determine eligibility and premium.

4. Pay the Premium: Once approved, pay the premium to activate your bond.

5. File the Bond: Submit the bond to the City of Lewiston as part of your permit application.

Maintaining Your Bond

To remain compliant with city requirements:

• Renew Annually: Most bonds are valid for one year and must be renewed for ongoing or new projects.

• Adhere to Regulations: Follow all permit terms and city ordinances to avoid claims.

• Update Information: Notify your surety of changes to your business or project details.

Benefits of the Bond

1. Legal Compliance: Satisfies the City of Lewiston’s permitting requirements for right-of-way projects.

2. Protects Reputation: Demonstrates your commitment to completing projects responsibly and ethically.

3. Financial Assurance: Ensures the city and public are protected from project-related damages.