Kansas Right-of-Way Bond: Highway, Street, Driveway, and Sidewalk Bond Guide

Construction, excavation, or development projects that affect public property in Kansas often require a Kansas Right-of-Way Bond, also known as a Highway, Street, Driveway, and Sidewalk Bond. These bonds are required by state and local governments to protect public infrastructure and ensure that contractors complete projects in compliance with regulations and restore any damage to public property.

In my experience, I’ve found that contractors and developers who fully understand the purpose and function of this bond can navigate the permitting process more effectively and protect themselves from potential claims or project delays. This guide will provide an in-depth look at the Kansas Right-of-Way Bond, including its purpose, who needs it, how it works, and how to secure one.

What is a Kansas Right-of-Way Bond?

A Kansas Right-of-Way Bond is a type of surety bond that acts as a financial guarantee to ensure contractors, developers, and businesses working on or near public property complete their work properly and in compliance with regulations. It covers construction projects that may involve streets, highways, driveways, sidewalks, or other public spaces.

This bond ensures that contractors:

• Follow local and state laws when working on public property.

• Properly restore or repair any damage caused to public infrastructure during their project.

• Fulfill the terms of their permit and project agreement.

If the contractor fails to meet these obligations, a claim can be filed against the bond to cover the costs of repairs, restoration, or damages.

How Does the Bond Work?

Three Parties Involved in a Right-of-Way Bond:

1. Principal: The contractor or business required to obtain the bond.

2. Obligee: The city, county, or state agency requiring the bond to protect public assets.

3. Surety: The bonding company that issues the bond and provides financial backing, guaranteeing that funds will be available if a claim is filed.

How Claims Work:

If the contractor violates the terms of the bond—such as failing to complete the work as specified, damaging public property without repairing it, or breaking local laws—a claim can be filed by the obligee or affected party.

• The surety investigates the claim to determine its validity.

• If the claim is approved, the surety pays the damages up to the full bond amount.

• The principal (contractor) is legally required to reimburse the surety for any claims paid.

From my experience, I’ve seen that claims can significantly impact a contractor’s finances and reputation, so it’s critical to comply with all project terms and local regulations.

Why is a Kansas Right-of-Way Bond Required?

1. Protecting Public Infrastructure

Public property, such as roads, sidewalks, and highways, is a community asset that must be protected. A Right-of-Way Bond ensures that any damage caused during construction, excavation, or similar projects is repaired at the contractor’s expense—not the taxpayers’.

2. Ensuring Compliance with Local Laws

Every municipality and state government has regulations governing work in public spaces. In my observation, I’ve seen that these bonds ensure contractors follow proper procedures, such as obtaining permits, adhering to safety standards, and completing projects on time.

3. Holding Contractors Accountable

The bond acts as a financial safeguard to hold contractors accountable for their actions. If a contractor damages public property, fails to complete repairs, or violates permit conditions, the bond ensures that funds are available to correct the issue.

4. Facilitating Permit Approval

A Right-of-Way Bond is often a mandatory condition for obtaining permits for projects involving public property. Municipalities use the bond as part of their risk management process to protect public assets.

Who Needs a Kansas Right-of-Way Bond?

A Kansas Right-of-Way Bond is required for contractors, developers, and businesses involved in construction or improvement projects that encroach on public property. Common scenarios include:

• Excavation Projects: Contractors digging near public streets, sidewalks, or highways.

• Utility Installations: Installing, repairing, or maintaining utility lines (water, gas, electricity, telecommunications) in public rights-of-way.

• Driveway Construction: Building or modifying driveways that connect private property to public streets.

• Sidewalk Construction or Repair: Installing or repairing sidewalks that cross public land.

• Roadway Modifications: Paving, widening, or altering public roads.

• Private Property Owners: Individuals working on projects that impact public property (e.g., driveway connections) may also be required to obtain this bond.

Each city or county may have specific requirements based on the nature of the project, so it’s essential to confirm the bonding requirement with your local authority.

How Much Does a Kansas Right-of-Way Bond Cost?

Bond Amount

The required bond amount is typically determined by the municipality or state agency issuing the permit. It depends on the scope of the project, the potential risk to public property, and the size of the area affected. Bond amounts can range from $5,000 to $100,000 or more, depending on the project.

Bond Premium

The premium is the cost of the bond, and it’s a small percentage of the total bond amount. This percentage typically ranges from 1% to 5%, depending on your financial profile.

For example:

• If your bond amount is $10,000 and your premium rate is 1%, your annual cost would be $100.

• If you have credit challenges, your premium might increase to 3%, resulting in an annual cost of $300.

Factors Affecting Premium Costs:

• Credit Score: A higher credit score usually results in a lower premium.

• Business Experience: Experienced contractors often qualify for better rates.

• Financial Stability: Companies with a strong financial track record are considered lower risk.

• Project Scope: Larger or more complex projects may require higher bond amounts.

Even if you have poor credit, many surety providers offer solutions to help you get bonded at a reasonable rate.

How to Obtain a Kansas Right-of-Way Bond

Step 1: Verify Bond Requirements

Contact your local city, county, or state authority to determine the required bond amount and any specific conditions tied to the bond for your project.

Step 2: Apply for the Bond

Submit an application to a reputable surety provider. You’ll need to provide details such as:

• Business information

• Project scope and location

• Financial and credit information

Step 3: Underwriting Review

The surety company will evaluate your application to assess the risk of issuing the bond. They may review your credit score, financial stability, and experience as a contractor.

Step 4: Pay the Premium

Once approved, you’ll pay the premium to activate the bond.

Step 5: Submit the Bond

File the bond with the appropriate government agency to meet your permitting requirements and begin your project.

Avoiding Claims on Your Bond

Claims on a Kansas Right-of-Way Bond can be costly and damaging to your reputation. Here are steps to avoid claims:

• Follow all local and state laws and regulations.

• Obtain all necessary permits before starting your project.

• Repair or restore any damage caused to public property.

• Complete the project on time and according to the terms of your contract.

In my professional experience, I’ve consistently found that clear communication with regulatory agencies and adherence to permit conditions are the keys to avoiding claims.

Benefits of a Kansas Right-of-Way Bond

1. Legal Compliance

The bond is often required to secure a permit, ensuring you can legally proceed with your project.

2. Public Trust

Being bonded demonstrates your commitment to professionalism and accountability, which can help build trust with clients and local authorities.

3. Financial Protection for Public Assets

The bond provides a financial safety net for government agencies and the public, ensuring damaged infrastructure is repaired without taxpayer expense.

4. Business Credibility

Having a Right-of-Way Bond shows that you’re a responsible contractor willing to meet your obligations, giving you an edge in competitive markets.

FAQs About Kansas Right-of-Way Bonds

1. How long is the bond valid?

The bond is typically valid for the duration of the project, but some agencies may require the bond to remain in place for a period after project completion to cover potential claims.

2. Can I get a bond with bad credit?

Yes, many sureties offer bonds for applicants with less-than-perfect credit, though the premium may be higher.

3. Does the bond cover business losses?

No, the bond protects the public, not the contractor. It doesn’t cover project-related expenses or business losses.

4. Is the premium refundable?

No, the premium is non-refundable, as it represents the cost of issuing the bond.

Why Choose Axcess Surety for Your Right-of-Way Bond?

At Axcess Surety, we specialize in helping contractors secure bonds quickly and affordably. We’ve worked closely with contractors across Kansas and understand the specific requirements of municipal and state agencies.

What We Offer:

• Fast Approval: Get bonded within 24-48 hours.

• Competitive Rates: We shop for the best premiums to fit your budget.

• Expert Guidance: We help you navigate the process from application to filing.

Conclusion

The Kansas Right-of-Way Bond is an essential requirement for contractors and businesses working on public property. It protects public infrastructure, ensures compliance with regulations, and holds contractors accountable for their work.

If you’re ready to secure your bond, we’re here to help you through every step of the process. Let’s get started today and make sure your project moves forward without delays!