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Texas bonds

Sherman, TX — Obstruction Bond

Doing work on or over Sherman’s public right-of-way? Prepare the city’s $5,000 obstruction bond and check the separate insurance requirement for repair or demolition work.

Also known as Sherman Obstruction Bonds

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

What this bond does

Provide the obstruction security required by Sherman’s building-code amendment for work on and over public ROW.

Who needs it
Persons performing covered work, including repair or demolition, on or over Sherman public rights-of-way.
Who it protects
The city requires the obstruction bond for the covered public-way work. The accepted instrument sets its detailed conditions and remedies; it is not the contractor’s liability insurance or blanket protection for every private 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.

Identify the public-way work

Sherman Code section 3.03.002(3) requires a $5,000 obstruction bond for persons doing work on and over public rights-of-way. The provision is not limited to digging a trench.

Describe the activity, location and affected public area. Ask the city for the accepted form and applicant/recipient wording so the security matches the actual work request.

Keep the bond and insurance evidence separate

For repair or demolition work on or over public ROW, the same provision also requires proof of public liability insurance of $100,000 per occurrence and $300,000 aggregate.

Those are insurance limits, not alternative bond sums. Arrange the requested evidence separately and have the city confirm its current certificate and submission requirements.

Apply for the bond and obtain work permission

Purchase Now opens RLI’s existing Sherman Obstruction Bond application. Use the legal principal, city condition and required sum, and confirm effective dates and execution with the provider.

After issuance, submit the bond and any required insurance evidence as the city directs. Obtain applicable work authorization separately; do not assume the bond permits an obstruction or ends automatically when the crew leaves.

Sources

Have these ready

  1. Legal applicant, work description and public ROW location.
  2. City’s accepted obstruction form, $5,000 requirement and effective dates.
  3. Applicable separate liability evidence and city execution, filing and closeout instructions.

Questions about this bond

What obstruction bond amount does Sherman specify?

Section 3.03.002(3) specifies $5,000 for work on and over public ROW. Have the provider match the city’s current accepted condition.

Is the liability insurance included in the obstruction bond?

No. The code separately requires liability evidence for repair or demolition, with $100,000 per-occurrence and $300,000 aggregate limits.

Does the code establish a twelve-month bond term?

The cited provision does not state one. Confirm effective dates, continuation, cancellation and discharge with the city and provider.

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