Maryland Highway/Street Permit One-Year Expire Bond: A Complete Guide

If you’re a contractor, developer, or utility company planning to work on Maryland highways or streets, you may need a Highway/Street Permit Bond before obtaining the necessary permits. Many Maryland municipalities require a one-year expire bond, meaning the bond is valid for 12 months and must be renewed annually if work continues beyond that period.

Failing to maintain an active bond can lead to permit revocation, fines, and legal penalties. This guide explains everything you need to know about the Maryland Highway/Street Permit One-Year Expire Bond, including its purpose, how it works, who needs it, and how to obtain one.

What is a Maryland Highway/Street Permit One-Year Expire Bond?

A Highway/Street Permit Bond is a surety bond required by Maryland state and local transportation agencies to ensure that contractors and companies working on public roadways comply with all regulations and restore the affected areas once the work is completed.

This bond is usually issued as a one-year expire bond, meaning it must be renewed annually if the project is still ongoing.

Key Features of a Maryland Highway/Street Permit Bond:

✔ Required for excavation, construction, or maintenance work on highways or streets
✔ Covers a 12-month term and must be renewed annually
✔ Ensures compliance with Maryland roadway regulations
✔ Protects public infrastructure from damage
✔ Guarantees proper restoration of streets, sidewalks, and curbs

If the permit holder fails to restore the roadway or violates permit conditions, a claim can be filed against the bond to cover the costs of repairs.

Why is a Highway/Street Permit Bond Required?

When work is performed on public roads, sidewalks, or right-of-way areas, Maryland authorities require a bond to ensure:

🚧 Roads, sidewalks, and curbs are restored to original condition.
🚧 Excavation and construction work follows safety regulations.
🚧 Contractors complete work according to permit conditions.
🚧 The government or public is not financially responsible for damages or unfinished work.

This bond protects Maryland cities, counties, and the state from financial losses due to poor workmanship, safety violations, or non-compliance.

Who Needs a Maryland Highway/Street Permit Bond?

A Highway/Street Permit Bond is required for contractors, businesses, and utility companies performing any type of work on public streets, highways, or right-of-way areas in Maryland.

You May Need This Bond If You:

✔ Are a contractor working on roadway construction or repairs.
✔ Perform excavation, trenching, or underground utility work.
✔ Install, repair, or maintain sewer, gas, water, or electrical lines.
✔ Modify or restore sidewalks, curbs, or street surfaces.
✔ Conduct landscaping, tree removal, or grading near public streets.

Examples of Maryland Agencies That Require This Bond:

• Maryland Department of Transportation (MDOT)

• Baltimore City Department of Transportation

• Montgomery County Department of Permitting Services

• Prince George’s County Department of Public Works & Transportation

• Anne Arundel County Right-of-Way Division

Each city or county sets its own bond requirements, so it’s important to check with the local permitting office before starting work.

How Does a One-Year Expire Bond Work?

A Highway/Street Permit Bond is a three-party agreement that includes:

1. Principal – The contractor, developer, or utility company obtaining the bond.

2. Obligee – The state or local transportation agency that requires the bond.

3. Surety – The bond company that guarantees compliance.

How the Bond Works:

✔ The bond is issued for one year and expires after 12 months unless renewed.
✔ If the permit holder fails to restore the roadway or violates permit terms, a claim can be filed against the bond.
✔ The surety company investigates the claim.
✔ If valid, the surety compensates the city, county, or state up to the bond amount.
✔ The permit holder must reimburse the surety for any claims paid.

This ensures that public funds are not used to cover contractor mistakes or unfinished work.

How to Obtain a Maryland Highway/Street Permit One-Year Expire Bond

Step 1: Verify Bond Requirements

• Contact the city, county, or state transportation agency to determine:

  • The required bond amount (varies by location and project type).

  • Where to file the bond (local vs. state agency).

  • Renewal requirements (bonds typically need to be renewed annually).

Step 2: Apply for the Bond

• Work with a licensed surety bond provider that specializes in Maryland bonds.

• Provide business details, project information, and permit details.

• Undergo a credit check (bond cost depends on financial stability).

• Pay the bond premium (typically 1% to 5% of the total bond amount).

Step 3: Receive and Submit Your Bond

• Once approved, the surety issues the bond certificate.

• Submit the bond to the appropriate licensing or permit office before beginning work.

Step 4: Renew the Bond Annually (If Required)

• Since this bond expires after 12 months, renew it on time to avoid:

  • Permit suspension

  • Project delays

  • Fines or legal penalties

Common Mistakes to Avoid with a Highway/Street Permit Bond

🚫 Not Checking Bond Amounts & Terms – Each city and county has different requirements. Always confirm the exact bond amount.

🚫 Waiting Too Long to Apply – Some bonds require underwriting, which can take time. Apply early to avoid project delays.

🚫 Forgetting to Renew the Bond – If the bond expires while work is ongoing, your permit may be suspended.

🚫 Ignoring Permit Conditions – Failure to restore roads properly can lead to bond claims, fines, or project shutdowns.

🚫 Choosing the Wrong Surety Provider – Not all bond companies offer fast approvals or competitive rates. Work with a specialist in Maryland construction bonds.

How We Can Help with Your Maryland Highway/Street Permit Bond

We’ve helped hundreds of Maryland contractors secure Highway/Street Permit Bonds quickly and affordably. Our goal is to make the process simple, efficient, and cost-effective.

✔ Fast Approvals – Many bonds are issued the same day.
✔ Lowest Rates Available – We shop multiple providers to get you the best deal.
✔ Expert Guidance – We help you determine exactly what bond you need.
✔ Hassle-Free Renewals – We send reminders before your bond expires so you never miss a renewal.

Get Your Maryland Highway/Street Permit One-Year Expire Bond Today!

If you need a Highway/Street Permit Bond in Maryland, don’t wait until the last minute. We’ll help you get bonded quickly at the best possible rate!

👉 Need a quote or have questions? Contact us today, and we’ll take care of everything for you!