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Introduction
From our perspective, contractors planning to excavate, build, or install utilities within public right-of-way areas in Brownsburg, Indiana need a Major Right of Way Bond before starting work. This bond ensures that roads, sidewalks, and other public infrastructure remain protected throughout construction projects.
The Town of Brownsburg, IN - Major Right of Way Bond serves as a financial guarantee that contractors will restore disturbed public property to its original condition. If a contractor fails to repair damage or complete required work, the town may file a claim against the bond to cover restoration costs.
This bond provides key benefits, such as:
✔ Compliance with Brownsburg’s municipal regulations for right-of-way projects.
✔ Financial security for the town to cover repair costs if a contractor defaults.
✔ Faster permit approvals for contractors ready to start work.
Contractors may also need similar bonds for work in other areas, including:
- Boone County, IN - Right of Way Permit Bond – Required for public infrastructure projects in Boone County.
- City of Anderson, IN - Master Electrician, HVAC, or Plumber License ($5,000) Bond – Ensures compliance for licensed tradesmen operating in Anderson, Indiana.
Without this bond, contractors risk permit denials, project delays, and legal penalties for working on public property without financial protection.
Common Misconceptions About Right of Way Bonds
We’ve noticed that many businesses and contractors misunderstand how right-of-way bonds work. Some of the most common misconceptions include:
✔ The bond does not protect the contractor – It protects public infrastructure, ensuring the contractor fulfills their responsibilities.
✔ This bond does not eliminate liability – If a claim is paid, the contractor must reimburse the bonding company.
✔ Having the bond does not guarantee permit approval – Contractors must still meet all Brownsburg permit requirements.
By understanding these details, contractors can avoid permit delays and unexpected liabilities.
Who Needs This Bond and How It’s Regulated
Based on our experience, the Town of Brownsburg requires this bond for contractors performing:
- Excavation work in public rights-of-way
- Utility installation or maintenance (water, sewer, electric, gas)
- Road construction or modifications
- Sidewalk or driveway alterations within the public easement
Key regulatory agencies overseeing right-of-way permits and bond requirements include:
- Town of Brownsburg Department of Development Services – Manages permits and inspections.
- Indiana Department of Transportation (INDOT) – Establishes state-wide roadwork regulations.
Failure to obtain this bond can lead to project shutdowns, financial penalties, and legal disputes with the town.
How the Major Right of Way Bond Works
What we’ve discovered is that this bond functions as a three-party agreement:
- The Principal – The contractor or business performing right-of-way work.
- The Obligee – The Town of Brownsburg, which requires the bond to protect public assets.
- The Surety – The bonding company that guarantees financial coverage if the contractor fails to meet project obligations.
If the contractor fails to restore a worksite, damages public property, or violates permit conditions, Brownsburg may file a claim against the bond. The surety may cover repair costs, but the contractor must reimburse the surety for any payouts.
Steps to Secure the Right of Way Bond
What we’ve discovered is that obtaining this bond follows a straightforward process:
- Confirm the bond requirement – Verify with Brownsburg’s Development Services whether this bond is required for your project.
- Apply with a surety provider – Submit your business and financial details to a licensed bonding company.
- Undergo a financial review – The surety evaluates credit history and financial stability.
- Receive a bond quote – The premium (cost) is a small percentage of the total bond amount.
- Pay the bond premium – Most bonds require annual renewal.
- Submit proof of bonding – Contractors provide the bond certificate when applying for a right-of-way permit.
Securing this bond early in the permit process prevents delays and compliance issues.
Risks of Not Carrying a Right of Way Bond
In our observation, contractors who fail to obtain this bond may experience:
- Permit denials – Brownsburg will not approve right-of-way work without the required bond.
- Project shutdowns – Unbonded contractors may be ordered to stop work until they comply.
- Financial penalties – The town may impose fines and legal consequences for unbonded work.
- Out-of-pocket liability – Contractors must pay for all damages and restoration costs without a bond.
Why Contractors Should Secure This Bond Now
We’ve learned that obtaining this bond offers several advantages:
✔ Faster permit processing – Contractors can start projects sooner.
✔ Regulatory compliance – Meets Brownsburg’s right-of-way permit requirements.
✔ Financial protection – Ensures the town can recover costs for any necessary repairs.
✔ Business credibility – Demonstrates responsibility and reliability to clients and municipalities.
Regulatory Compliance Under Indiana Law
The Town of Brownsburg, IN - Major Right of Way Bond is subject to Indiana’s public works and right-of-way regulations. Contractors must adhere to:
- Indiana Code Title 8, Article 23 – Governs road construction and maintenance requirements.
- INDOT Right-of-Way Regulations – Establishes compliance standards for infrastructure projects.
- Brownsburg Municipal Code – Outlines local requirements for permits and bonds.
Businesses can find official information on right-of-way permits and bonding through the Town of Brownsburg’s Development Services Department.
Conclusion
We’ve come to appreciate that the Town of Brownsburg, IN - Major Right of Way Bond is essential for contractors working in public right-of-way areas.
Without this bond, businesses face permit rejections, legal risks, and financial responsibility for damages.
Swiftbonds helps contractors secure fast approvals, competitive rates, and expert assistance to meet Brownsburg’s bonding requirements.
Frequently Asked Questions
Who is required to obtain this bond?
Any contractor performing roadwork, excavation, or utility installations within Brownsburg’s public right-of-way areas needs this bond.
What does this bond cover?
The bond guarantees that contractors restore work sites to their original condition, covering potential damage to roads, sidewalks, and utility infrastructure.
How much does the bond cost?
The bond amount is determined by the town, while the premium (contractor’s cost) is a small percentage of the bond amount based on credit history.
What happens if a claim is filed against the bond?
If a contractor fails to complete required restoration work, the town may file a claim. The surety may cover the costs, but the contractor is legally responsible for repaying the surety.
Are there similar bonding requirements in other Indiana counties?
Yes. Contractors may also need:
- Boone County, IN - Right of Way Permit Bond – Required for infrastructure work within Boone County.
- City of Anderson, IN - Master Electrician, HVAC, or Plumber License ($5,000) Bond – Required for licensed contractors in Anderson, Indiana.