Phoenix Right-of-Way Bond

Phoenix Arizona Right-of-Way Performance Bond

The Right-of-Way Performance Bond for the City of Phoenix is required to protect the City against incomplete construction projects that inhibit the public right-of-way or projects not completed in accordance with permit specifications. Contractors working on permitted projects in the right-of-way need the bond in an amount directly proportionate to the cost of the project.

APPLY FOR PHOENIX RIGHT-OF-WAY BOND

When you purchase your Right-of-Way Bond with Jet Insurance Company, the City of Phoenix receives a guarantee from Jet that the City will not be damaged by your construction.

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

The cost of a City of Phoenix Right-of-Way Performance Bond depends largely on the bond limit, but rates start as low as $100. The rates are also based on personal credit of the contractor.

The Right-of-Way Bond limit can widely vary, so Jet may require more information for higher bond limits. Lower limits only require a soft credit check, while larger limits may need additional information regarding the project, a history of previous projects, and business financials to provide a quote.

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

The Right-of-Way Performance Bond is required to be filed with the City of Phoenix to ensure compliance with Sections 31, 32, and 32A of Phoenix’s Code of Ordinances and the completion of a right-of-way construction project. The contractor demonstrates fiscal responsibility by holding a bond with Jet, guaranteeing that the City will receive financial compensation in order to complete a project up to standard if you fail to do so. The City regulates right-of-way construction projects to protect the public and avoid inconveniencing them from an unfinished project that inhibits the use of the City’s streets and sidewalks.

How Does the Application Process Work With Jet?

Applying for your Right-of-Way Performance Bond only takes a few minutes! The basic application will ask for your personal information, business information, the bond limit, and a social security number (to run a soft credit check). 

If you have a lower bond limit, you will receive a rate available for immediate purchase. Applications for higher bond limits will be forwarded to a Jet team member for review (further information may be requested).

How Does the Right-of-Way Bond Get Filed to the City of Phoenix?

After purchase, Jet will fill out the Right-of-Way Bond with the required information, signing and sealing the bond before mailing it to you. Once you receive the bond, you are obligated to sign it and submit it with any other permit paperwork you may have.

Once all documents have been collected, you must mail the paperwork to: 

City of Phoenix
Planning & Development Department
200 W. Washington St, 3rd Floor
Phoenix, AZ 85003

What Happens if I Need to Cancel My Right-of-Way Bond?

If you need to cancel your Right-of-Way Performance Bond, you must provide another method of financial assurance to replace the bond. The City of Phoenix will not release you or Jet from liability unless another bond is filed or one of the following accepted forms of financial assurance: 

When the City of Phoenix has released Jet from liability, our team will calculate a prorated refund for your bond. Any time left on the bond will be reflected in the refund. 

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

The Right-of-Way Performance Bond must be active while you are working on a right-of-way construction project. Once the project has been completed (and any needed inspections have been completed), the City will release you and Jet from liability of the bond. 

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

In general, a Right-of-Way Performance Bond is a guarantee that you will fulfill the agreement of the bond — completing the right-of-way construction project according to the permit specifications approved by the City. Failure to complete the project will result in the City filing a claim up to the full limit of the bond. The City uses the bond payout to hire another contractor to complete the project. To avoid bond claims, it is best to adhere to the permit agreement and complete the construction project. 

However, bond claims are not the only punitive actions you may receive. Violations of Section 31 in regards to street and sidewalk construction can result in penalties found in subsection 206, including fines of $500-$2,500, civil action against the contractor, and being found guilty of a Class 1 misdemeanor. Violations of the grading and drainage construction rules of Section 32A can lead to civil citations and an informal court hearing as indicated in Section 32A-30. 

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

If you receive a claim against your Right-of-Way Bond, Jet will investigate the validity of the claim and see if there is a way to resolve the issue. If the claim leads to a bond payout, Jet will pay the City in the amount needed for restitution as an extension of your credit. You are obligated to pay Jet back for the bond payout.

Are There Other Bonds That a Contractor Needs?

Yes; a Right-of-Way Performance Bond for the City of Phoenix is required for a specific project but contractors in Arizona must be licensed and carry a Contractor License Bond in order to conduct business. The bond will range from $2,000 to $100,000 and is used to protect clients from monetary damages caused by violations of the obligations a contractor must follow. 

Phoenix 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: