Arizona Maricopa County Right-of-Way Performance Bond

Maricopa County Arizona Right-of-Way Performance Bond

The Right-of-Way Performance Bond is required by the Flood Control District (FCD) of Maricopa County and the Maricopa County Department of Transportation (MCDOT) as protection against contractors failing to adhere to the construction project under the right-of-way permit’s provisions. The limit of the bond shall be proportionate to an amount that Jet would be able to indemnify the County against damages that could occur during construction or failure to complete construction.

APPLY FOR A MARICOPA COUNTY RIGHT-OF-WAY BOND

Apply for your Maricopa Right-of-Way Performance Bond with Jet for a streamlined application that only takes a few minutes!

How Much Does the Right-of-Way Performance Bond Cost?

The cost of the Maricopa Right-of-Way Performance Bond can be as low as $100, but is dependent on the bond limit required and a personal credit check. Larger limits may require additional information, such as project details to provide a quote.

Applying with Jet directly puts you in touch with the insurance company backing your bond. Jet doesn’t use middlemen at any stage of the bonding process, avoiding the mess of broker fees and miscommunication that a third party can contribute. 

What Is the Required Amount for the Maricopa County Right-of-Way Bond?

The Right-of-Way Bond must be held in an amount that would protect the County from any losses from the contractor’s failure to complete the project under the agreement of the right-of-way permit. The bond limit will be provided by MCDOT or the Flood Control District once a proposal of the project has been made.

Why Is the Right-of-Way Performance Bond Required?

Maricopa County requires a Right-of-Way Bond to protect the County from damages to the public right-of-way. The MC Department of Transportation is responsible for building and maintaining the County’s highway infrastructure. The Flood Control District was created to monitor flooding through Maricopa County. 

To prevent dangerous situations during public transit or flood season, the County regulates construction projects to ensure the project continues on pace. The Right-of-Way Performance Bond helps to ensure that the contractor will fulfill the obligations of the permit for construction being done on the County’s highway system or the District’s property (such as basins, channels, and dams) or access points, and return the right-of-way to an appropriate condition.

How Does the Application Process Work With Jet?

Applying for your Maricopa County Right-of-Way Bond with Jet only takes a couple minutes! The application will walk you through each step, filling in information like your contractor business name, the bond limit required, whether the job is for the MCDOT or the FCD, and your business entity type. A personal social security number will also be needed as part of a soft credit check, which will not affect your credit score like a hard inquiry would.

Once you are done with the application, your results will go one of two ways: 

  1. You will receive an approved rate that is ready to purchase online 
  2. Your application will be submitted for a short review by Jet, which may need additional business information. Once the application has been approved, you will receive an email with a rate that is available for purchase

The two results of the application are largely dependent on the bond limit that is required: larger limits will need a more in-depth review. Still, you can count on Jet for a quick review since there are no middlemen involved. 

APPLY FOR A MARICOPA COUNTY RIGHT-OF-WAY BOND

How Does the Right-of-Way Performance Bond Get Filed to Maricopa County?

When you purchase your Right-of-Way Bond, Jet will sign and seal the bond form and send you an emailed copy. Once you receive the bond, you must sign it and send it to the appropriate agency along with any additional paperwork. You may be able to email an electronic copy to speed up the process. 

You must mail the original bond to the corresponding address: 

Flood Control District
Flood Control District of Maricopa County
2801 West Durango St
Phoenix, AZ 85009

MCDOT
Maricopa County Department of Transportation
2901 West Durango St
Phoenix, AZ 85009

When Does the Right-of-Way Performance Bond Obligation End?

A Right-of-Way Bond must be released by Maricopa County after the project for which the permit was issued has been completed. The County must inspect the project and sign off on its completion before ending Jet’s liability. 

The County may also release liability when a replacement bond or a cash deposit has been submitted. 

How Does a Contractor Avoid Right-of-Way Performance Bond Claims?

Since the purpose of the Right-of-Way Performance Bond is to guarantee that the Right-of-Way Permit is fulfilled, the best way to avoid bond claims is to comply with the stipulations and obligations of the permit. The bond also holds you accountable to restore the work site to the condition given in the right-of-way permit. If there is an issue with the way the project is going, the County can serve warnings to correct the issue and follow the permit’s obligations. 

Failure to comply with the permit and any warnings that may come from the County can result in claims against your bond.

What Happens if I Get a Right-of-Way Performance Bond Claim?

If you receive a claim on your Right-of-Way Bond, Jet will launch an investigation within 10 days to determine its validity. If you’re at fault, Jet will advise you to take a positive course of action before it escalates into a legal battle. 

If the claim turns out to be valid and no corrections have been made, Jet is obligated to pay the County within 30 days up to the full limit of the bond under the Arizona Administrative Code Section R20-6-801. The bond makes sure that the County is paid right away but, since you are responsible for your actions, you must pay Jet back in the amount of the bond.

Are There Other Bonds That a Contractor Needs?

Yes, any person who offers their services as a contractor in the state of Arizona must hold a Contractor License Bond. The Contractor License Bond limit ranges from $5,000 to $100,000 to protect against incomplete or faulty projects.

Maricopa County Arizona Right-of-Way Performance Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: