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North Carolina bonds

North Carolina — Highway Encroachment Installations Bond — Form R/W 16

Use this RLI option when NCDOT has requested Form R/W 16 for an installation under a highway encroachment agreement. On that form, the encroaching second party is the principal; a contractor's separate Form 16A is a different instrument.

Also known as North Carolina Highway Encroachment Installations Bond; North Carolina Highway Encroachment Installations Form R/W 16 Bonds

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

What this bond does

Support the installation obligation in the identified NCDOT encroachment agreement, using the second-party corporate surety form and the amount NCDOT requires.

Who needs it
The company or other second party named in an NCDOT encroachment agreement that has been asked to supply Form R/W 16.
Who it protects
Form 16 binds the principal and surety to NCDOT for installation according to the agreement and applicable Utilities Accommodation Manual provisions, including indemnity for failure to install as required. It does not authorize construction by itself.

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.

Check who must sign as principal

NCDOT's July 2024 Form 16 is for the second party to the encroachment agreement. It asks for the agreement number and date, county, route, location and type of installation. Use the legal name in that agreement rather than substituting the contractor performing the work.

NCDOT also publishes a contractor Form 16A and a continuing Form 16B. Repeated operations or a request naming the contractor should be checked against those instruments before using this Form 16 option.

Have the agreement and bond reviewed together

The form leaves the bond sum blank. Obtain the amount and required execution details from NCDOT; the catalog supplies no fixed amount or term for this option. The form includes signatures and seals and calls for power-of-attorney and certificate-of-authority documentation.

Use Purchase Now to continue to RLI's application. Once the correct bond is issued, submit it through the NCDOT District handling the work location as directed. Bond issuance and NCDOT approval of the encroachment are separate steps.

Completion does not automatically release the bond

NCDOT's guidance allows a release request no sooner than one year after satisfactory completion. The written request identifies the applicant, work, roads, county, agreement number and completion date. NCDOT performs a final inspection and requires deficiencies to be corrected.

For a corporate bond, the company authorizes release and provides written notice to the Division Engineer under NCDOT's process. Do not treat the anniversary or finishing construction as an automatic discharge.

Sources

Have these ready

  1. Obtain the NCDOT agreement and its Form R/W 16 bonding request.
  2. Match the second party's legal name, county, route, installation location and agreement number.
  3. Confirm the required sum and execution documents with the responsible District.
  4. Review the issued form before submitting it; retain NCDOT's later written release.

Questions about this bond

Is Form 16 the contractor's bond?

Not the second-party form described here. NCDOT's Form 16 names the second party as principal; Form 16A is the separately published contractor instrument. Match the written request before applying.

Does this page specify a statewide fixed amount?

No. Form 16 has a blank bond sum and the option supplies no amount. Use the amount required for your encroachment agreement.

Can installation start as soon as RLI issues the bond?

Issuance alone is not NCDOT permission to work. Complete the agreement and any required authorization before starting installation.

Is the bond released a year after the job ends?

Not automatically. NCDOT's process includes a written request, at least one year after satisfactory completion, inspection and correction of deficiencies before release.

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