Michigan Right of Way - Highway, Street, Driveway, Sidewalk Bond

If you’re planning to work in a public right of way in Michigan—whether it’s a highway, street, driveway, or sidewalk—you’ll likely need a Right of Way Bond before getting started. This bond serves as a financial guarantee that the work will be completed according to regulations and that any damages caused during the process will be repaired.

In my experience, many contractors, utility companies, and property owners don’t realize they need this bond until they begin the permitting process. If you’re unsure about your bond requirements, this guide will walk you through everything you need to know.

What Is a Michigan Right of Way Bond?

A Right of Way Bond is a type of surety bond required by local or state agencies for projects that impact public infrastructure. It ensures that work performed within a public right of way—such as installing a driveway, constructing a sidewalk, or performing underground utility work—is completed correctly and does not create hazards for the public.

This bond provides financial protection to the city, county, or state in case a contractor fails to:

✔ Follow construction standards and permit requirements
✔ Complete the project properly and on time
✔ Restore the public area to pre-construction conditions
✔ Repair any damage caused during the project

If a contractor violates any of these conditions, the government can make a claim against the bond to recover costs associated with repairs or cleanup.

Who Needs a Michigan Right of Way Bond?

From my experience, a wide range of individuals and businesses may need a Right of Way Bond, including:

✅ Contractors – General contractors, paving companies, and excavation firms working on public streets, sidewalks, or driveways.
✅ Utility Companies – Businesses installing or repairing underground water, gas, electrical, or telecommunication lines.
✅ Property Owners – Individuals or businesses making driveway connections to a public road or performing work that affects sidewalks or curbs.
✅ Municipal Contractors – Construction firms working on public infrastructure projects such as road expansions or street repairs.
✅ Landscaping or Excavation Companies – Businesses modifying public right of ways for drainage, tree removal, or grading work.

Different Michigan municipalities may have specific bonding requirements, so it’s essential to check with the local permit office to confirm whether a bond is required for your project.

Types of Work Requiring a Right of Way Bond in Michigan

A Right of Way Bond may be required for various types of construction, installation, and repair work, including:

1. Road and Highway Work

• Road widening or resurfacing

• Lane closures for construction

• Installation of traffic signals or signage

2. Driveway and Sidewalk Construction

• Installing a new driveway that connects to a public road

• Widening or modifying an existing driveway

• Building or replacing sidewalks in front of a property

3. Utility and Excavation Projects

• Digging trenches for underground gas, water, or electrical lines

• Repairing or replacing sewer or stormwater pipes

• Installing fiber optic or telecom cables in public streets

4. Public Right of Way Maintenance

• Tree trimming or removal that affects sidewalks or streets

• Installing streetlights or public benches

• Landscaping work that impacts curbs or roadways

Each city, township, or county may have different rules about when a bond is required, so checking local regulations is crucial before beginning any project.

How Much Does a Michigan Right of Way Bond Cost?

The cost of a Right of Way Bond depends on several factors, including:

📌 Bond Amount Required – This varies by location and project type. Some bonds are as low as $5,000, while others may exceed $50,000.
📌 Contractor’s Credit Score – Strong credit can qualify you for lower bond rates.
📌 Business Experience – Established companies with a solid track record may receive better pricing.
📌 Project Complexity – Larger projects or those involving high-risk work may require higher bond amounts, increasing costs.

Typical Cost Estimates

Most contractors pay between 1% and 5% of the total bond amount.

For example:

• A $10,000 bond may cost between $100 - $500

• A $25,000 bond may cost between $250 - $1,250

• A $50,000 bond may cost between $500 - $2,500

We’ve found that bond costs can be minimized by working with an experienced surety provider that offers competitive rates and helps you find the best deal.

How to Obtain a Michigan Right of Way Bond

Getting a Right of Way Bond in Michigan is a quick and straightforward process:

1️⃣ Confirm Bond Requirements – Contact the local permitting office to determine the required bond amount and any additional paperwork needed.
2️⃣ Submit a Bond Application – Provide basic details about your business, the project scope, and financial history.
3️⃣ Receive a Quote – Your premium will be based on credit history, business experience, and project risk.
4️⃣ Pay for the Bond – Once approved, pay the premium to activate your bond.
5️⃣ File the Bond with the Municipality – Submit the bond to the appropriate city, county, or state office before work begins.

Most bonds can be issued within 24 hours, so contractors can get approved and start their projects quickly.

What Happens If a Claim Is Filed Against Your Bond?

If a contractor fails to meet the terms of the bond, the local government can file a claim to cover:

🚧 Repairs to unfinished or defective work
🚧 Damage caused to public infrastructure
🚧 Cleanup costs from improper excavation or construction
🚧 Costs related to safety hazards left unaddressed

If a claim is validated, the surety company will pay the damages up to the bond limit, but the contractor is ultimately responsible for repaying the surety company.

Why Choose Axcess Surety for Your Right of Way Bond?

At Axcess Surety, we specialize in helping contractors, utility companies, and property owners secure the bonds they need—fast.

✔ Quick Turnaround – Most bonds are issued within 24 hours.
✔ Best Pricing – We work with top-rated sureties to get you the lowest possible rate.
✔ Expert Guidance – Our team understands Michigan bonding laws and can guide you through the process.
✔ Easy Online Application – Apply from anywhere and get approved in minutes.

Get Your Michigan Right of Way Bond Today!

If you need a Michigan Right of Way Bond, we’re here to help! Contact us today or apply online to get a fast quote and secure your bond hassle-free.

🔗 Apply Now or call us for more information!