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Tennessee bonds

Tennessee — Running Occupancy Right Of Way Bond

A TDOT running utility bond can cover approved Use and Occupancy Agreements within a specified area. Confirm that area and the Regional Utilities Engineer’s required sum; “running” does not grant permission for every future installation.

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

What this bond does

Provide TDOT-accepted continuing security for the approved utility use-and-occupancy arrangements identified in the request.

Who needs it
Utility owners with multiple approved highway-right-of-way installations in an agreed area.
Who it protects
The rules require security for performance of use-and-occupancy conditions, including applicable restoration duties. This is different from a driveway entrance construction bond or a general state construction-contract payment/performance bond.

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.

Confirm the covered area and agreements

Rule 1680-6-1-.07(12) describes a Running Surety Bond, Form U-4, with an amount established by the Regional Utilities Engineer to cover approved agreements for a specified area.

Identify the utility owner, routes, counties and covered agreements. Ask whether existing running security applies before arranging another bond; an unapproved installation is not authorized merely because the utility has security on file.

Do not borrow the single-agreement minimum

The same rule separately describes Form U-5 surety for an individual arrangement and states its $2,500 minimum. It does not state that figure as a universal amount for a running bond.

Obtain the actual running-bond request and current department-supplied form. Special freeway fiber-optic facilities can have separately specified forms and terms; do not assume ordinary area security resolves that request.

File security and obtain approved occupancy

Have the provider verify the owner/principal, TDOT recipient, form, area, amount and dates before purchase. The rules require the surety’s properly executed power of attorney with department-supplied bond forms.

Follow the Regional Utilities Engineer’s current submission instructions and obtain approved agreements/plans before work. The rules describe inspection, a maintenance period and departmental release action; the offering states no fixed term or automatic cancellation deadline.

Sources

Have these ready

  1. Utility owner’s legal name, Regional Utilities Engineer request and current running form.
  2. Specified geographic area and approved use/occupancy agreements, routes and installations.
  3. Assigned sum, dates, power of attorney and filing/maintenance-release instructions.

Questions about this bond

Does running security approve future installations?

No. The rule refers to approved agreements within a specified area; each installation still needs the applicable approval.

Is $2,500 the verified running-bond amount?

No. That minimum appears with the separate Form U-5 procedure. Obtain the Engineer’s assigned running-bond sum.

Is this the driveway entrance bond?

No. Match the utility use-and-occupancy request rather than substituting a state-highway driveway instrument.

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