Gresham Right-Of-Way Permit Bond
The City of Gresham requires any contractor performing construction that inhibits a public right-of-way to obtain a Right-of-Way Permit Bond. The bond is a financial guarantee made by the contractor and the Surety (Jet Insurance) to Gresham that the work will be completed in a timely manner and the public site will be restored to its prior condition.
You have won the bid and Gresham now has this requirement in the way before work can begin. With Jet, purchasing the bond will only take a moment online and the bond form will be on its way.
How Is the Right-Of-Way Bond Amount Determined?
The bond needs to be 10% higher than the city's estimated cost to repair the public area following construction. The calculation for the bond amount is the reconstruction cost multiplied by 1.10. The City of Gresham wants the bond amount to appropriately cover the costs to repair or rebuild the road, sidewalk, sewer or waterway, so the city is not paying for any damages themselves.
What Is the Cost of the Right-Of-Way Bond in Gresham?
For bond amounts under $10,000 in value the cost for the bond is $100 with Jet. For higher bond amounts the rate starts at $100, but is dependent on the construction business owner’s personal credit.
| Bond Limit | Cost |
|---|---|
| $10,000 | $100 |
| $25,000 | $250 |
| $50,000 | $375 |
Jet can offer these bonds at a low cost by cutting out brokers and agents. Typically, Surety Companies have layers of middlemen in the way collecting fees and commissions and slowing down service to contractors.
Can Jet File the Bond for Me?
Jet can file the bond directly to the City of Gresham for you! Or Jet can send the bond to you for submission, which is beneficial should you have other paperwork to submit to the city. Contractors are given the choice during the checkout process with Jet and you can choose which delivery priority the bond is sent at should there be a rush.
The city requires the original bond form to be submitted prior to work commencing. The bond is filed with at the following location:
City of Gresham
1333 NW Eastman Parkway
Gresham, OR 97030
When Does the Gresham Right-Of-Way Bond Expire?
The Right-of-Way permit is valid for 90 days with the City of Gresham, but can be specified for a longer period of time with an attached form to the permit.
The City of Gresham Right-of-Way Bond remains active for a period of 60 days after the city declares the work impacting the public space complete and the public property affected by construction is restored. The city can release the bond at an earlier time, but only the city makes that release. The contractor and the surety cannot cancel the bond once work commences.
Unlike bonds required for a license, right-of-way permit bonds are not renewed. It is a one-time purchase specific to the job performed by the contractor. The bond issued by Jet will remain in effect as long required by the City of Gresham.
What Action Can Be Taken Against a Contractor Holding a Right of Way Permit?
Contractors must abide by four principles to avoid having any issue with the City of Gresham: complete the work on time, stay in compliance, restore the right of way, and pay all fees. This infographic gives a visual of the four principles.
The contractor is liable for work that needs to be performed to fulfill the permit conditions. Contractors are also liable for work outside of the construction performed including, but not limited to, emergency repairs, traffic control, utility work and testing. See Section 7 of the right-of-way permit application for more details. Failure to abide by the permit, restore the public facilities or provide compensation for required costs will result in disciplinary action from the city.
If the City of Gresham deems the right of way not restored to its prior condition, the city will send a written notice to the contractor with a timeline, not to exceed 30 days, restore the right of way properly. Should there be outstanding costs to the City following the time period provided, the City will hold the contractor responsible for all costs.
The City of Gresham may also fine the contractor up to $1,000 each day for violations and non-compliance of the city's codes and policies (GRC Article 6.35).
What Happens if I Get a Bond Claim?
Should the City of Gresham not find financial satisfaction resulting from a contractor violation, the city may file a claim on the Right-of-Way Permit Bond. Jet always investigates the validity of claims and in the case of a claim from government agencies who have completed their own thorough investigation, there may be little Jet can do other than abide by the decree of the city.
If the claim is valid, Jet will make payment for the claim not to exceed the limit of the bond. Gresham has no defined timeline for the handling of bond claims, so Jet defaults to the standards set by the State of Oregon Department of Insurance.
| 30 days from receiving claim notice |
Jet acknowledges receipt of claim in internal files and with claimant. Jet sends instructions, claim forms (including proof of loss form) and provides reasonable assistance to claimant. Jet will reply to communications concerning the claim within reason. |
| 45 days from receiving claim notice |
Jet will complete its claim investigation; or Request for more time to investigate, if necessary. |
| 30 days from receiving properly executed proof of loss from claimant |
Jet accepts or denies the claim; or Requests for more time to investigate. |
| 45 days from requesting more time to investigate |
Jet accepts or denies the claim; or Requests for more time to investigate. |
Unlike insurance policies, which protects contractors from outside perils, this surety bond protects the City of Gresham from the actions of the contractor. The contractor is ultimately responsible for their actions and therefore must reimburse the surety company for any claims paid. Failure to repay a Surety will result in difficulties to obtain a surety bond for future work.
Why Is a Right-Of-Way Permit Bond Required Gresham Oregon?
Right-of-Way Permit Bonds guarantee that public roads or waterways that are affected or can be affected by construction have a financial guarantee the road or waterway is returned to its original condition. The City of Gresham wants its roads, sidewalks and sewers to remain safe and in good condition.
Construction to nearby buildings or landscape can affect public thoroughfares. The city wants to make sure it is not left to repair any damages or pay for any clean-up once construction is done. The contractor is responsible for damages done to public areas and if the contractor is unwilling or unresponsive to make amends, then the surety bond is a method for the city to get reimbursed for damages.
How Does the Application Process Work With Jet?
For bond amounts under $25,000 the application process is simply providing basic company and permit information along with the payment and your bond will be completed online.
With a bonding amount over $25,000 we do have to do a credit check, but that will only take a few more seconds during the online process to obtain the right-of-way-permit bond.
Are There Other Bonds That a Principal Needs?
For any licensed contractor in Oregon the Construction Contractors Board requires a surety bond in order to be licensed. There are several other permit bonds required in Portland, Pendleton, Beaverton, Crook County, Multnomah County and Washington County. Before starting work in those cities and counties be sure that you have met the proper permit requirements.
