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North Carolina bonds

North Carolina — DOT Encroachment (Second Party Applicant Only - Form R/W 16) Bond

NCDOT Form R/W 16 is for the second party to the encroachment agreement—not its installation contractor. Use the approved agreement package to prepare the principal, required security amount and specific highway installation before applying.

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Recorded state
North Carolina
Bond type
Right-of-Way / Street Work / Encroachment Bond
Category
Contractors & construction

What this bond does

Secure the second party's installation of the encroaching facilities under the described agreement and indemnify NCDOT for failure to install them in accordance with its requirements.

Who needs it
The second-party applicant named in an NCDOT highway encroachment agreement. A contractor posting its own bond for that party uses the different contractor form; recurring operations may call for approved continuing security instead.
Who it protects
The official July 2024 form incorporates the encroachment agreement and the Utilities Accommodations Manual and supplements. Its obligation runs to NCDOT for the specified installation, not to every customer of the applicant.

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.

Use the agreement to identify the principal and work

Form 16 expressly states that it is only for the second party to the encroachment agreement. Identify that party's legal name, rather than entering a contractor simply because it will perform the excavation or installation.

Prepare the agreement number and date, county, route numbers, precise location and encroachment type. The form includes water, sewer, gas, driveway and roadway examples; the actual agreement determines the covered work. NCDOT says the required amount is typically in the approved package, not a statewide flat sum.

Submit the executed bond without confusing it with authorization

Use the existing Propeller application with the confirmed second-party details. Check the issued form, sum and agreement identifiers, and arrange the required execution and authority attachments. NCDOT directs project bonds to the District Office serving the work location.

Obtain the required encroachment authorization separately. After satisfactory completion, NCDOT's published guidance describes a minimum year before release eligibility, a written request and final inspection. Corporate-surety release involves the bonding company and encroachment authorization letter. Keep those closeout steps distinct from buying the bond or assuming it expires when installation ends.

Sources

Have these ready

  1. Confirm that the security request is for the agreement's second party under Form 16.
  2. Gather the agreement package, principal identity, required sum and installation details.
  3. Check signatures, seals, power of attorney and certificate of authority with the issuer.
  4. Arrange District filing, separate work authorization and NCDOT's written release process.

Questions about this bond

Can my installation contractor be principal on this Form 16?

The official form is only for the second party to the agreement. Form 16A is the separate contractor instrument; confirm which party NCDOT requires to post security.

How much security does Form 16 require?

The form leaves the amount blank. NCDOT says the required sum is typically shown in the approved encroachment package; obtain that instruction rather than choosing a general minimum.

Does the bond end when the facilities are installed?

Do not assume so. The published release process includes minimum eligibility after satisfactory completion, a written request and inspection. Confirm the responsible District's instructions and address any deficiencies.

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