Kentucky Right of Way Bond: Highway, Street, Driveway, and Sidewalk Projects

If you’re planning to perform work that impacts public rights of way in Kentucky—such as highways, streets, driveways, or sidewalks—you’ll likely need a Kentucky Right of Way Bond. From my experience, this bond is a critical requirement for ensuring that construction, repairs, or alterations to public infrastructure are completed according to local regulations, protecting public safety and minimizing risks for municipalities.

This guide will help you understand what the bond is, who needs it, how it works, and how to secure one for your project.

What Is a Kentucky Right of Way Bond?

The Kentucky Right of Way Bond is a type of surety bond required by cities, counties, or the state government for individuals or companies working on public rights of way. This includes projects involving:

• Highways

• Streets

• Driveways

• Sidewalks

The bond serves as a financial guarantee that contractors will complete the project in compliance with local laws, ordinances, and permits. It also ensures that public property will be restored to its original or acceptable condition after the work is completed.

If the contractor fails to meet these obligations, the bond provides financial protection for the government or other impacted parties.

Who Needs a Kentucky Right of Way Bond?

From my observation, a Right of Way Bond is typically required for:

1. Contractors

• Paving contractors working on streets, sidewalks, or driveways.

• Excavation contractors digging trenches or installing utilities in public spaces.

2. Developers

• Real estate developers building roads or driveways that connect to public streets.

3. Property Owners or Businesses

• Individuals or businesses making alterations to public infrastructure, such as adding driveway access or replacing sidewalks.

If your work involves disrupting or altering public infrastructure in Kentucky, you’ll likely need this bond to obtain the necessary permits from local or state authorities.

Why Is the Kentucky Right of Way Bond Required?

From my perspective, this bond serves several important purposes:

1. Protects Public Property

Ensures that contractors restore public infrastructure—such as roads, driveways, or sidewalks—to its original condition after completing their work.

2. Ensures Compliance with Permits

Guarantees that work performed in public rights of way adheres to all local and state regulations, including safety standards.

3. Minimizes Financial Risk for Governments

Provides financial recourse for cities, counties, or the state to recover costs if a contractor fails to complete the project or causes damage.

4. Accountability for Contractors

Holds contractors accountable for their work, ensuring they fulfill their obligations and meet project standards.

Key Features of the Kentucky Right of Way Bond

Bond Amount

The required bond amount varies depending on the project scope and the permitting authority (city, county, or state). Common bond amounts range from $1,000 to $50,000 or more, depending on the potential impact of the project.

Cost of the Bond

The cost (or premium) of the bond is a small percentage of the bond amount, typically ranging between 1% and 5%. Factors influencing the premium include:

• The bond amount.

• The contractor’s or applicant’s credit score.

• Financial stability and business experience.

For example:

• If the bond amount is $10,000, the annual premium may range from $100 to $500, depending on your creditworthiness and financial background.

Duration

The bond is typically required for the duration of the project and may need to be renewed if the project extends beyond the original permit timeframe.

How Does the Kentucky Right of Way Bond Work?

The bond is a three-party agreement involving:

1. Principal: The contractor, developer, or property owner performing the work and obtaining the bond.

2. Obligee: The government entity (e.g., city, county, or state) requiring the bond to protect public property.

3. Surety: The bonding company that issues the bond and provides financial backing.

Here’s how the bond works:

1. Issuance of the Bond
   The contractor or property owner secures the bond as part of the permit application process for the right of way work.

2. Compliance with Requirements
   By obtaining the bond, the contractor agrees to complete the project according to the permit requirements, including restoring public property to its original condition.

3. Claims Against the Bond
   If the contractor fails to meet these obligations—such as leaving a damaged sidewalk unrepaired—the obligee can file a claim against the bond.

4. Surety Investigation
   The surety company investigates the claim to determine its validity. If the claim is legitimate, the surety pays the government entity up to the bond amount.

5. Reimbursement by Principal
   The contractor or property owner is responsible for reimbursing the surety for any claims paid out, ensuring accountability.

How to Obtain a Kentucky Right of Way Bond

Securing a Right of Way Bond is straightforward with the right preparation and guidance. Based on my experience, here’s how to get started:

1. Determine Bond Requirements

Contact the local government agency or permitting office to confirm the bond amount and specific requirements for your project.

2. Choose a Surety Bond Provider

Work with a reputable surety bond company that understands Kentucky’s bonding requirements and offers competitive rates.

3. Complete an Application

Provide information about your project, business, and personal financial background.

4. Underwriting Process

The surety company evaluates your application, credit history, and project scope to determine your premium rate. Strong credit can help secure lower premiums, but options are available for those with lower credit scores.

5. Pay the Premium

Once approved, pay the bond premium to activate your bond.

6. File the Bond

Submit the bond to the permitting agency to finalize your permit application and begin work.

Benefits of the Kentucky Right of Way Bond

From my perspective, this bond offers numerous benefits for both contractors and government agencies:

1. Ensures Compliance
   Guarantees that public infrastructure projects meet legal and safety standards.

2. Protects Public Property
   Provides financial assurance that roads, sidewalks, and other public areas will be restored after the work is completed.

3. Enhances Credibility
   Demonstrates that contractors and developers are financially responsible and committed to ethical practices.

4. Minimizes Financial Risk
   Reduces the risk of financial loss for municipalities if a contractor fails to fulfill their obligations.

Tips for Staying Compliant

To avoid claims and ensure successful project completion, I’ve found the following tips helpful:

1. Understand Permit Requirements
   Carefully review all permit conditions and ensure your work complies with local laws and standards.

2. Restore Public Property
   Always return public infrastructure to its original or acceptable condition after completing your work.

3. Communicate with Authorities
   Maintain open communication with the permitting agency to address any issues or concerns promptly.

4. Keep Accurate Records
   Document all project activities and compliance efforts to protect yourself from disputes or claims.

Why Choose Axcess Surety for Your Bond?

At Axcess Surety, we’ve worked with contractors, developers, and property owners across Kentucky to provide fast and reliable bonding solutions. From my experience, having a trusted partner can make securing your bond simple and stress-free.

What We Offer:

• Competitive Rates: We find the best premiums tailored to your specific project needs.

• Quick Turnaround: We understand construction timelines, so we issue bonds promptly.

• Expert Guidance: Our team walks you through the process and answers all your questions.

Conclusion

The Kentucky Right of Way Bond is a vital requirement for any project involving highways, streets, driveways, or sidewalks. From my experience, securing this bond ensures compliance with local regulations while protecting public property and minimizing risks for both contractors and municipalities.

If you’re ready to secure your bond or need assistance navigating the process, I’m here to help. Let’s get your bond in place so you can focus on completing your project with confidence!