North Carolina Highway Encroachment Bond

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Bond Penalty: Set by state and endorsed on approved encroachment permit

A contractor or developer looking to work on projects that involve encroaching upon North Carolina highways, state roads, streets or thoroughfares must generally provide a North Carolina highway encroachment bond to the states before work may be permitted an commenced. Understanding the legal requirements and contractor's obligations is imperative.

A North Carolina Highway Encroachment Bond, also known as a highway encroachment permit bond, is a type of surety bond required by the North Carolina Department of Transportation (NCDOT). It serves as a financial guarantee that contractors or developers will adhere to the terms and conditions outlined in their approved encroachment permits when working on projects that involve encroaching upon the state's highways or rights-of-way. Per the NCDOT, "Performance and indemnity bonds may be required from the applicant of an encroachment agreement for installations to be placed within the limits of highway rights-of-way. The purpose of such bonds is to indemnify NCDOT for any damages within the highway rights-of-way caused by the installation." The highway encroachment bond amount is set by the Department of Transportation and is the amount shown on the improved encroachment agreement. The Department's practice is to return the surety bond upon fulfillment of the contractor's obligations, however there is a specific process. Per the NCDOT, "Upon receipt of the written request for bond release, NCDOT personnel will perform a final inspection of the project. If all work is satisfactory, release will be authorized. If deficiencies are observed, release will be authorized when deficiencies have been addressed. If deficiencies remain unaddressed, NCDOT may cash the bond. In the case of corporate surety bonds, the encroaching party is responsible for notifying the bonding company along with a copy of the encroachment authorization letter. The bonding company will then submit to the Division Engineer a written request for release along with a copy of the encroachment authorization letter." Electronic communication and document filing is encouraged through the state's portal. Inquiries may be be directed as follows:

Encroachments Office

North Carolina Highway Encroachment Bonds play a vital role in ensuring compliance with state regulations and protecting the public with regards to projects that affect state roads. By understanding the purpose and requirements of these bonds, contractors and developers can navigate the permit application process smoothly and fulfill their obligations with confidence.

North Carolina surety bond leader, Surety One, Inc. is a specialist in providing for the bonding needs of the construction, electrical, HVAC and road/heavy highway contractors. Learn more about the bonds that we offer to professional developers and contractors here. We offer this class of surety instrument to all applicants in every state where contractors must provide them. Call (800) 373-2804, email or click here for a live chat to discuss your North Carolina highway encroachment bond need.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

What We Need From You

Additional Attachments

  • Current Business Financial Statement (if bond over $25,000)
  • Certificate of Contractor's Liability Insurance (if bond over $25,000)