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North Carolina bonds

North Carolina — DOT Continuing Encroachment Installation (Form R/W 16B) Bond — Form R/W 16

NCDOT Form R/W 16B is a continuing indemnity bond for recurring highway encroachment operations. This page's catalog name also carries a “Form R/W 16” qualifier, so confirm that the existing application will supply 16B—not the single-agreement second-party form—before proceeding.

Also known as North Carolina DOT Continuing Encroachment Installation (Form R/W 16B) Bond

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Recorded state
North Carolina
Bond type
Right-of-Way / Street Work / Encroachment Bond
Category
Contractors & construction
Local scope
Authority
Identified authority / locality
North Carolina Department of Transportation

What this bond does

Provide continuing security for the principal's highway operations when NCDOT accepts systemwide or statewide coverage instead of separate bonds for each project.

Who needs it
Companies and contractors performing substantial repeated work in NCDOT right-of-way. Continuing security does not dispense with the encroachment agreements and approvals required for particular installations.
Who it protects
The official 16B form obligates the principal to reimburse NCDOT for road repairs made necessary by damage from the principal's operations. It is not a contractor-license bond or a promise to complete every private construction contract.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Match continuing coverage to NCDOT's approval

NCDOT's form description encourages continuing bonds for companies and contractors doing substantial highway right-of-way work from year to year. Its programme guidance says continuing instruments are held by the Utilities Unit's Encroachments Office for extensive work and repeated submissions that may span counties.

Have NCDOT confirm the principal, required sum, accepted geographic/work scope and handling office. The published form leaves the amount blank. Do not treat continuing coverage as an unrestricted permit for all installations.

Use 16B's cancellation provision, not an assumed annual term

The posted April 2021 form permits the surety to cancel with sixty days' written notice to NCDOT. It preserves the surety's liability, subject to the bond's terms, for covered acts committed before cancellation. A notice period is not an automatic release of earlier obligations.

After the provider confirms the 16B match despite the catalog qualifier, use the existing Propeller application. Check the executed form, signatures, power of attorney and certificate of authority, then arrange NCDOT filing and acceptance. Obtain each required encroachment authorization separately and coordinate changes or cancellation with NCDOT and the surety.

Sources

Have these ready

  1. Obtain NCDOT's continuing-security instructions and accepted 16B form.
  2. Confirm the principal, required sum, work/geographic scope and Utilities filing office.
  3. Have the provider resolve the listing's 16B title versus Form R/W 16 qualifier.
  4. Arrange executed documents, NCDOT acceptance and separate installation approvals.

Questions about this bond

Are Forms 16 and 16B the same bond?

No. Form 16 concerns the second party to a described encroachment agreement. Form 16B is continuing indemnity security. This listing's qualifier needs confirmation before application.

Does continuing coverage authorize every future project?

No. NCDOT requires encroachment agreements for proposed construction or utility installations within its right-of-way. The bond is security, not the agreement or work authorization.

Does cancellation erase earlier road-damage obligations?

No. The published 16B form allows sixty days' written notice by the surety and expressly preserves liability for covered acts committed before cancellation, subject to its terms.

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