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South Carolina Right of Way and Performance Bon...

Right of Way Bond (DOT)
Contractor Surety Bonds
Price: Depends on application
South Carolina Right of Way and Performance Bond (DOT)

Right of Way Bond (DOT)

The State of South Carolina
Right of Way Bond (DOT)

Surety Bond Details

State: South Carolina
Category: Right of Way Bond (DOT)
Class: Contractor Surety Bonds
Obligee: South Carolina Depart...
Amount: Varies
Duration: Stated on Bond
Expiration: Stated on Bond

Cost: Depends on applic...

The State Of South Carolina
Right of Way Bond (DOT)
Contractor Surety Bonds
South Carolina Department of Transportation
Stated on Bond
Stated on Bond
Surety Bond Insurance
SORPid: A-224
Right of Way Bond (DOT) Details
South Carolina Right of Way and Performance Bond (DOT)
South Carolina Right of Way and Performance Bond (DOT)

What is a Right of Way Bond?

Exploring the Basics in 2023

Right of Way (ROW) bonds are necessary for any infrastructure and construction projects in public areas.  Also known as right-of-way bonds, these essential securities guarantee that contractors working on the project fulfill their obligations without causing damage or posing risks to the community.  To understand how they work, it is essential to know what goes into acquiring such bonds – from an application process up to keeping contractors accountable regarding delivering results.  So this article will explain all you need about ROW Bonds and why having them is vital for securing your development works done safely!

Short Summary

  • A Right Way Bond is a financial guarantee for public right-of-way construction projects.
  • The South Carolina Department of Transportation is vital in ensuring surety bond requirements are met to uphold the public interest.
  • Planning and considering potential road closures, establishing performance bonds, adhering to regulations, and working closely with state partners are critical factors for successful ROW bond scenarios.

Understanding Right of Way Bonds

Right of Way Bond

A surety bond, or Right of Way Bond, is a type of consumer protection used to guarantee payment for losses and compliance with regulations during construction projects.  In South Carolina, the Department of Transportation (SCDOT) typically uses these bonds when beginning work in public right-of-way bonds and out-of-way areas like roads and sidewalks.  This financial security protects them from any damages from contractors working on an installation, removal, or maintenance, such as at Lake Murray Dam on a southbound lane project starting tomorrow.  The entity that requires this guarantee, known as the obligee, can be anyone within SC state limits, including SCDOT crews which are also bound by it.

The Role of the South Carolina Department in ROW Bonds

The South Carolina Department of Transportation is vital for ROW bonds, as it oversees the abandonment of right-of-way for highways and supervises installation and adjustment processes involving utilities and highways.  Although there are no obligations explicitly about these types of bonds in the state, its presence ensures that projects follow local standards.

Its involvement guarantees that all requirements,s permits, licenses, or permission forms will be acquired before any commencement begins.  They are working closely to oversee progress developments while ensuring laws set by South Carolina are abided by throughout each project duration.

SCDOT Crews and Their Responsibilities

SC DOT Surety Bond

SCDOT crews play an essential role in maintaining the safety and functionality of public areas.  They ensure that bond requirements are met, such as determining how much is necessary for a surety bond and setting specific conditions to be adhered to by those involved.  Through this process, they guarantee proper safeguarding of the public's interest while upholding integrity regarding infrastructure matters.

Types of Right-of-Way Bonds

Different types of ROW bonds are compulsory for obtaining a permit to carry out activities or construct something in public places.  The applicant's credit history, bond application, and financial records determine the bond price tag.

Bond Amount Determination

The bond, also referred to as a ROW Bond, typically demands an amount of principal equivalent to one and a half times the estimated cost of the construction or excavation project.  This principal sum may vary according to specific criteria, such as the size of the venture in question, the geographical site where it will be conducted, and its related hazards.

For example, large-scale projects in areas highly prone to natural disasters could demand higher bonds due to the heightened risk factor.

Surety Bond Requirements

The requirements for getting a surety bond to carry out work in publicly owned areas of right of way can differ between municipalities, with credit checks and underwriting processes varying accordingly.

The South Carolina Department of Transportation (SCDOT) requires a performance bond to grant an encroachment permit for work on the state highway right-of-way.  The bond must be in the amount of the estimated cost of removal or corrective action, not to exceed $100,000.

The bond must contain the following information:

  • The name of the principal and surety
  • The amount of the bond
  • The description of the work to be performed
  • The name of the owner of the right-of-way
  • The name of the SCDOT district office that issued the permit
  • The bond must be a single-name bond.
  • The bond must be continuous and effective until the work is completed and all permit conditions have been met.
  • The bond must be in writing and signed by the principal and surety.

When the encroachment permit application is submitted, the bond must be filed with SCDOT.  The bond will be returned to the surety company when the work is completed and all permit conditions have been met.  If the principal fails to comply with the terms of the permit, the surety may be called upon to perform the work or to pay the cost of removal or corrective action.

ROW Bond Application Process

Surety Bond Application

A contractor must secure a Surety Bond to begin any Right of Way project.  To acquire one, they must contact an insurance or bonding agency and request the relevant form.  After submitting it, they will be assessed and approved by that particular company before being able to move forward with their work.  Once accepted, the bond enables them access to this specific realm of construction projects.

Working closely with State Partners

Contractors should strive to build strong partnerships with relevant state partners to complete the bond application process correctly and quickly.  This collaboration enables them access to resources that can provide insight into regulations that must be followed, acquire necessary permits, and assist throughout submitting all required paperwork.  Working closely with these groups helps guarantee successful compliance along each step toward the completion of the way bond itself.

Common ROW Bond Scenarios

A ROW bond is a surety bond that assures any work within public rights of way will be executed per the agreement terms.  An insurance provider or firm typically gives it and has financial assistance for support.  Damaged walkway restoration projects are included in this, including making repairs due to construction and other activities happening in these spaces.  The bonds provide security that everything shall be done up to par according to what was initially stated when the contract was signed.

Damaged Walkway Repairs

When repairing sidewalks in areas secured with ROW bonds, contractors usually rely on grinding, patching, filling cracks, and mud jacking for practical repair work.  The effectiveness of the repairs also depends mainly upon constructing sturdy walkways that are maintained regularly so any issues present can be addressed quickly before they worsen over time.

General Assembly Involvement

The General Assembly is crucial in keeping ROW bond projects compliant with state regulations.  They oversee these endeavors to ensure all safety standards, environmental policies, and other laws are followed.  Deviating from those rules may lead to costly penalties such as fines or delays, so monitoring the bond process by the general assembly is vital for success.

Tips for Ensuring Successful Work Performed


Regarding Right of Way bond scenarios, having a performance bond is essential to guarantee that the contracted work will be completed as agreed upon.  It safeguards the project owner from any financial losses resulting from the contractor's failure to meet their obligations.  Strengthening relationships between all involved parties is essential since it ensures everyone knows and agrees with what needs to be done.  Thus preventing potential disagreements or miscommunications during the execution of said projects.

Remaining Compliant with Regulations

Maintaining compliance with regulations in bond projects is necessary to ensure that the work follows all applicable laws, job specs, permits, and other criteria.  This will prevent legal or permit issues or penalties from arising.

When dealing with bond scenarios, it's essential to abide by the regional, state, and federal legislation, including any permits needed, licenses, and documentation for such a project.

Planning for Potential Road Closures

Considerable preparation is crucial when accounting for potential road closures in the context of ROW bonds.  It helps with the timely completion of construction projects, limited traffic interference, and heightened safety levels.  Consequently, consideration should be given to the closure's lengthiness, how it will affect traffic movement on roads, and its impact on areas still closed due to public safety reasons like access to businesses or services that remain closed or inaccessible.

By planning thoroughly and informing residents about any changes beforehand, contractors can reduce community-wide disruption during project delivery while guaranteeing quick completions.


Ultimately, the Right of Way bonds are essential to guaranteeing secure and compliant activities in the publicly owned and held rights-of-way.  By understanding the obligations, paperwork process, and frequent cases associated with ROW bond work, contractors and state partners can come together proficiently when taking on these projects while minimizing disarray and potential risks for communities.  Through proper planning ahead, effective communication strategies along with compliance with applicable regulations are involved.  ROW bonded plans will go a long way towards ensuring optimal protection of functional public infrastructure is achieved without flaws or difficulties.

Frequently Asked Questions

Who pays for the performance bond?

The contractor is held accountable for securing a performance bond; the project owner usually provides financial assistance to cover its cost.

What are the three major types of construction bonds?  Why are they required?

The three main types of construction bonds are bid performance and payment.  They guarantee that a contractor will meet their contractual requirements without causing financial damage to the client.  These assurances help promote trust between clients and contractors during the project completion process, ensuring there is no disruption along the way.  Bonds remain an integral part of this relationship as they protect everyone involved against potential losses or issues arising due to unfulfilled duties by either party.

What is the purpose of a bid bond?

A bid bond is intended to safeguard the project owner from any monetary losses which may be caused if the contractor does not meet their contractual responsibilities.  This particular type of bond guarantees that, in case of a failure by the contractor to honor commitments, they will have financial responsibility imposed on them through a guarantee provided by the company issuing it.

With this protection in place for both parties involved in repair work, all required performance and payment bonds must also be presented when awarded job contracts since those are part and parcel of necessary elements to ensure the successful completion of repair work once begun.

What is the purpose of a performance bond?

Performance bonds are crucial for project owners to safeguard their investments and ensure contractors carry out what was agreed upon.  They provide an extra layer of security by guaranteeing that the contractor will fulfill its obligations according to contract terms, or else the Surety company is obligated either to pay off completion costs or reimburse any losses incurred from non-compliance on behalf of the contractor.  This type of financial assurance can bring peace of mind to construction projects.

What is a DOT bond?

A DOT bond, which is essential for any business associated with the transportation industry, provides assurances of completion for contracts by state Departments of Transportation.  This type of bond guarantees works in this sector's construction and service/maintenance fields.

What is a South Carolina Right of Way bond?

A South Carolina right-of-way bond is a surety bond required by the South Carolina Department of Transportation (SCDOT) before a contractor may be granted a permit to accomplish work that will infringe on public streets, roads, and highways.  These surety bonds are also referred to as "encroachment bonds."
Right of Way Bond (DOT)

A surety bond is required to secure a permit for right-of-way work along public highways or other public roadways. The permit may be required for excavation, grading, sidewalk, encroachment, maintenance, or other roadway work. The bonds typically ensure work is completed in compliance with specifications and contract documents.

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How do I get a South Carolina Right of Way and Performance Bond (DOT)?

The application process for a South Carolina Right of Way and Performance Bond (DOT) is quick and easy, usually only taking about five minutes from start to bond download (as with most our instant issue bonds). Simply click the "Buy Now" button below, complete the few questions for the bond application, pay your premium online, Docusign the agreements, then download your surety bond delivered via PDF. You can now print your now effective, signed and sealed bond in color.

By posting a surety bond, principals pledge to comply with the conditions of any written contract or applicable law.

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