Purchase the Tacoma, WA – Right of Way $15,000 Bond

How the Right of Way Bond Protects Contractors and the City

The Right of Way Bond serves as a financial guarantee for the City of Tacoma and the public, ensuring that contractors remain accountable for the work they perform in public spaces. Here’s how the bond functions in practice:

• Guaranteeing Compliance: The bond ensures that you follow all city regulations and codes while working in public right of way areas. This includes complying with construction standards, safety measures, and restoration requirements.
• Covering Damages: If your work causes damage to public property—such as damaging sidewalks, streets, or underground utilities—or if the project creates unsafe conditions, the city can file a claim against your bond to cover the cost of repairs or hazard mitigation.
• Accountability and Financial Responsibility: The bond ensures that if a claim is filed, the surety (the company that provides the bond) will cover the damages up to $15,000. However, you, as the contractor, are responsible for reimbursing the surety for the payout. This holds you accountable for any mistakes, ensuring that your work meets required standards.

Essentially, the bond helps the city avoid financial risk while making sure contractors are incentivized to complete their projects responsibly and according to the rules.

Steps to Get the Tacoma Right of Way $15,000 Bond

Applying for the Tacoma Right of Way Bond is a simple process, but understanding each step will make it smoother and more efficient. Here’s what you need to do:

1. Find a Surety Bond Provider: The first step is to find a surety company that offers the Tacoma Right of Way Bond. At Axcess Surety, we specialize in providing bonds to contractors and offer competitive rates to help you get bonded quickly.
2. Submit Your Application: Complete a bond application, providing details about your business, financial background, and the specific project you’ll be working on. This information helps the surety assess the risk involved in issuing the bond.
3. Undergo a Credit Check: Your credit score is one of the key factors in determining your bond premium. Contractors with strong credit scores can expect to pay between 1% and 5% of the bond amount, meaning the cost could range from $150 to $750 annually for a $15,000 bond.
4. Receive Your Bond: Once your application is approved and the premium is paid, the surety will issue the bond. You’ll then file the bond with the City of Tacoma before starting your project.

Once you’ve secured your bond, it’s important to renew it annually to maintain compliance and continue working on projects that impact public property. Failing to renew could result in delays or fines from the city.

Why Tacoma Contractors Need a Right of Way Bond

Securing a Right of Way Bond is not just about following the rules—it’s a smart move that protects both your business and the city’s infrastructure. Without this bond, contractors cannot legally work on projects that affect public property, and you could face severe consequences if you attempt to operate without it.

Here’s why having the bond matters:

• Meeting Legal Requirements: Tacoma requires contractors working in public rights of way to hold this bond. Without it, you’re at risk of project shutdowns, fines, or losing your license to operate in the city.
• Ensuring Public Safety: Construction projects can create hazards for the public, such as damaged roads or disrupted sidewalks. The bond ensures that you are financially responsible for fixing any issues, keeping the public safe.
• Building Trust with Clients and the City: Being bonded shows that you’re a professional who takes accountability for your work. It reassures the city and your clients that any issues arising from your work will be resolved without putting them at financial risk.

The bond acts as a safeguard, helping you avoid costly claims, while also demonstrating your commitment to quality work and safety. Without it, you risk not only legal action but also damage to your reputation as a contractor.

Staying Compliant with Tacoma’s Right of Way Rules

Once you have secured the bond, staying compliant with Tacoma’s right of way regulations is key to avoiding claims and keeping your bond in good standing. Here are a few ways to ensure you’re meeting the city’s requirements:

• Follow City Guidelines: Be sure to adhere to Tacoma’s specific building codes, safety measures, and environmental standards. This includes using approved materials, following safety protocols, and making sure public spaces are restored after construction.
• Meet Deadlines and Complete Work Fully: Finishing your projects on time and to the city’s standards helps avoid issues. Delays, incomplete work, or failure to meet inspection criteria can result in fines, delays, or claims against your bond.
• Address Issues Immediately: If problems are discovered during or after the project—such as road damage or utilities being disrupted—take immediate steps to fix them. Quickly resolving issues helps prevent bond claims and protects your business reputation.

By following these best practices, you can reduce the risk of bond claims and ensure that your projects run smoothly, protecting both your business and the public.

Handling Claims Against Your Tacoma Right of Way Bond

In the event that a claim is filed against your Right of Way Bond, it’s important to understand how the process works and what impact it can have on your business. Here’s what you can expect:

• Investigation: Once a claim is filed, the surety company will investigate to determine if it’s valid. If the claim arises from your work causing damage or failing to meet city standards, the claim may be approved.
• Payout: If the claim is valid, the surety will pay the claimant (usually the City of Tacoma) up to the $15,000 bond limit to cover the costs of repairing the damage or resolving the issue.
• Reimbursement: Although the surety covers the payout initially, you are responsible for reimbursing the surety for the amount paid. This process ensures that you remain financially accountable for the work you perform.

Having a claim filed against your bond can lead to higher bond premiums in the future or difficulty obtaining bonds for future projects. It’s always best to prevent claims by following city regulations closely and addressing any issues with your work as soon as they arise.

How Much Does the Tacoma Right of Way $15,000 Bond Cost?

The cost of the Tacoma Right of Way $15,000 Bond will depend on several factors, primarily your credit score and business history. Here’s a breakdown of what you can expect:

• Premium Costs: Bond premiums typically range from 1% to 5% of the bond’s total value. For a $15,000 bond, you could pay between $150 and $750 annually, depending on your credit score and financial standing.
• Credit Impact: Contractors with strong credit will generally secure lower premium rates, while those with lower credit scores may face higher costs. This is because surety companies view lower credit scores as a higher risk.
• Annual Renewal: The bond is valid for one year, so you’ll need to renew it annually to maintain compliance with the city’s regulations. As long as you avoid claims and follow best practices, your renewal premiums should stay consistent.

At Axcess Surety, we help contractors find competitive bond rates and make the bonding process simple. By maintaining good financial standing and avoiding claims, you can keep your bond costs manageable and ensure your business remains protected year after year.

Common Questions About the Tacoma Right of Way Bond

What is the purpose of the Tacoma Right of Way $15,000 Bond?

This bond is required by the City of Tacoma for any contractors working on public property. It ensures that contractors follow local regulations and protects the city and public from financial damages caused by construction work.

How long is the bond valid?

The bond is typically valid for one year and must be renewed annually if you continue working on public right of way projects in Tacoma.

What happens if I don’t secure the bond?

If you do not obtain the bond, you are not legally allowed to work on public property in Tacoma. Failing to secure the bond could result in fines, project shutdowns, and suspension of your contractor license.

What if a claim is filed against my bond?

If a valid claim is made, the surety will pay up to $15,000 to cover the costs of repairs or resolving the issue. You will then need to reimburse the surety for the amount paid, and multiple claims could lead to higher premiums or difficulties securing bonds in the future.

Get Your Tacoma Right of Way Bond Today

Securing the Tacoma Right of Way $15,000 Bond is essential for legally working on public property and ensuring that your business stays protected. At Axcess Surety, we are here to help you get bonded quickly and at competitive rates so you can focus on your projects with confidence.

Whether you need a new bond or are renewing an existing one, our team is ready to guide you through the process. Contact us today to get started and keep your projects compliant with Tacoma’s right of way regulations.