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Nevada Right-of-Way Occupancy Bond
The Nevada Department of Transportation (NDOT) requires contractors who are applying for a right-of-way permit to also file a Right-of-Way Occupancy Bond with their local district office.
Jet Insurance Company provides the Right-of-Way Occupancy Bond as an assurance to the Nevada Department of Transportation and their local district office that the contractor will follow all permit regulations for the excavation, grading, encroachment, or maintenance right-of-way project. If permit violations are committed, the surety bond guarantees restitution for the NDOT so they may hire a new contractor to complete the right-of-way job up to code.
What Is the Bond Limit and Cost for Nevada Right-of-Way Occupancy Bonds?
According to the Nevada Department of Transportation, the bond limit is determined by your local District Engineer and must be in an amount equal to 110% of the estimated cost of the right-of-way project. The experience of the contractor as well as the potential disruption and hazards to the surrounding public area will also be considered.
At Jet, the cost of the Right-of-Way Occupancy Bond is only a small percentage of the bond limit and is based on both the bond amount and the applicant’s personal credit. For example, a $10,000 limit costs as low as $100 a year. Take a look at the chart below for additional bond limits and our preferred tier rates.
| Bond Limit | Cost |
|---|---|
| $10,000 | $100 |
| $25,000 | $188 |
| $50,000 | $375 |
Jet is a direct surety company, providing bonds without the use of middlemen brokers or agents who elongate the process and add on commission fees. If you’re applying for a right-of-way permit or already have one and just need to file the required bond, Jet can issue you the Right-of-Way Occupancy Bond in a matter of minutes and at an affordable price!
The Nevada Right-of-Way Occupancy Permit Bond Process With Jet
Jet’s application for the Right-of-Way Permit Bond is online and can be completed in just a few minutes. General information is collected including your contact details, bond limit, and social security number. We will run a quick credit check once you have submitted all your info, but no need to worry, this is a soft check and it won’t affect your score. A Jet underwriter will then send you over an approved rate that is ready for immediate purchase. All you have to do is fulfill payment and you’ll instantly receive a copy of your bond form and receipt. It’s as easy as that!
Jet gives you the option to have our team file your bond for you (free of charge) or you can choose to file the bond yourself along with your Occupancy Permit Application. Just choose the best option that fits your needs at checkout. The Nevada Department of Transportation requires all paperwork including the original signed and sealed Right-of-Way Occupancy Bond to be filed with the project’s local district office. Listed below are the mailing addresses and contact details for the NDOT’s local district offices:
Las Vegas District Office (Includes Tonopah and Caliente)
123 E. Washington Ave.
Las Vegas, NV 89101
702-385-6500
Reno District Office (Includes Carson City)
310 Galletti Way
Sparks, NV 89431
775-834-8300
Winnemucca District Office
725 W. 4th Street
Winnemucca, NV 89445
775-623-8015
Elko District Office
1951 Idaho Street
Elko, NV 89801
775-777-2700
Ely District Office
1401 East Aultman Street
Ely, NV 89301
775-289-1706
The NDOT requires the Right-of-Way Occupancy Bond to remain in effect with your local district office for the entire duration of your permit. Luckily, our team has created a quick and hassle-free renewal process. A renewal invoice will be sent to your email and mailing address far before your bond term expiration date. Just fulfill the payment and your bond will remain active for another term.
According to the Nevada Department of Transportation, the Right-of-Way Occupancy Bond is not cancellable. Your local District Engineer will be in charge of managing and approving your permit project for completion. Your bond will be released of liability as soon as this occurs.
If you have any questions or concerns, you can contact us through email at [email protected] or by phone at 855-296-2663 and we will be happy to help you out!
How Does a Nevada Contractor Avoid Right-of-Way Occupancy Permit Bond Claims?
Contractors permitted to work on excavation, grading, encroachment, or maintenance projects for a public sidewalk, street, highway, or other right-of-way areas are expected to comply with all permit obligations and State rules. These regulations can be found listed in Chapter Sections 408.427 through 408.437 of the Nevada Administrative Code. Failure to comply may result in a loss of your permit, large fines, and/or a bond claim.
A claim will typically only be filed on the Right-of-Way Occupancy Bond if the local District Engineer finds that a regulation violation has been committed and the contractor refuses to resolve the problem or if the contractor abandons the project for no valid reason. In these scenarios, the District Engineer will use the bond to cover the costs of hiring a new contractor to finish the right-of-way project up to State and permit standards.
Immediately contact Jet if you receive an official claim notice directly from your local District Engineer or the Nevada Department of Transportation. We will ask for all available information and documentation regarding the claim; the Jet team will use these details for our investigation.
If the claim is justified, Jet is legally obligated to make payment up to the bond’s limit (payouts won’t exceed the bond amount). You, the permittee, are responsible for your actions and must reimburse Jet for the claim payout made on your behalf. Failure to do so may lead to future difficulties in obtaining surety bonds, specifically permit bonds that are required of contractors working in the State of Nevada.
