South Carolina Right of Way Performance Bond

Bond Penalty: Greater of $5,000 or 1.5 times the estimated construction cost

A South Carolina right of way performance bond is required before a contractor may be granted a permit to accomplish work which will encroach on public streets, roads and highways. Per the South Carolina Department of Transportation, "An application for encroachment permit is a request to SCDOT for permission to perform work on SCDOT maintained rights-of-way. An approved permit grants the applicant permission to encroach on the roadway within the guidelines established on the permit." These surety bonds are also referred to as "encroachment bonds". The traffic engineering division offer an excellent online portal for contractors to accomplish the application process. The SCDOT also publishes excellent training materials for permit applicants (ACCESS AND ROADSIDE MANAGEMENT STANDARDS, Ed. 2008).

Per the SC DoT manual, The Department of Transportation may require a performance bond or letter of credit before issuance of an encroachment permit. The right of way bond must be attached to the encroachment permit and may require prior coordination with the county or local government to determine the extent of their jurisdiction. The amount of the South Carolina right of way performance bond must be equal to one and one half times the estimated cost of construction or five thousand dollars ($5,000), whichever is greater. The right of way permit bond guarantees compliance with all terms of the encroachment permit by providing, in cases of noncompliance indemnity for any and all damages and costs incurred by the SC DoT or local government entity. A surety bond remains in full force and effect until released upon satisfactory completion of the work described on the permit. The surety's obligation also extends to any damage cause by pre-permitted work and those damages caused by encroachment on areas/zones not covered by the permit and incident to the permitted work. The right of way performance bond carries a two year warranty tail.

South 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 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 Underwriting@SuretyOne.com or click here for a live chat to discuss your South Carolina right of way performance bond need.

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