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Virginia — VDOT Highway Permit (LUP-SB) Bond

VDOT's LUP-SB form provides surety security for the highway work or use identified in your land use permit. Match the principal, activity, locality and amount to VDOT's request; the form is different from a city ROW bond and can carry continuing obligations for utilities left in the highway.

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

What this bond does

Secures satisfactory performance and the permit obligations stated in VDOT's LUP-SB form for the covered highway activity.

Who needs it
Applicants arranging VDOT land use permit security for highway cuts, utility facilities, entrances, property movements or another specifically described permitted use.
Who it protects
The form binds the principal and surety to the Commonwealth of Virginia and protects it against the covered permit-related losses. VDOT administers the security and original filing; a local city bond is not automatically a substitute.

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 activity and VDOT's security amount

The form separates house movements, highway cutting/tunneling, utility installation and maintenance, entrances/grading, and a field for another exact purpose. Identify the county, city or town of the work and the actual permit scope before provider issuance.

The surety rule bases performance security on estimated ROW work cost unless a specific rule applies. Its districtwide utility amount is $10,000 per county, while logging-entrance districtwide security is $10,000 per district. Neither is a universal amount for every LUP-SB application.

Separate completion security from continuing facilities

The rule distinguishes performance security for the permitted work from continuous security for facilities remaining in highway ROW. Private or commercial entrances do not require continuous security under that rule; other installations may require it as determined by VDOT.

LUP-SB allows surety cancellation after 60 days' written notice lodged with the Commissioner or designee, but retains liabilities on earlier permits. Active-permit cancellation depends on satisfactory completion, and continuous utility security cannot end without facility removal or replacement protection as stated in the form.

Issue and file LUP-SB before relying on a permit

Obtain VDOT's current amount, named-recipient instructions and applicable performance or continuing coverage requirements. Use the existing Propeller Purchase Now option only after the provider confirms the required LUP-SB instrument.

The form calls for principal and surety execution, seals, acknowledgments and attached power-of-attorney authorization, with the original filed with VDOT. Complete the separate land use permit approval and follow its work conditions. Bond issuance alone is not permission to occupy or cut a highway.

Sources

Have these ready

  1. Identify the legal principal, VDOT permit activity and work locality.
  2. Obtain the required amount and determine whether continuing facility security applies.
  3. Prepare LUP-SB execution, seals, acknowledgments and power of attorney.
  4. Confirm original filing and separate permit authorization with the responsible VDOT office.

Questions about this bond

Is every VDOT highway bond $10,000?

No. The rule uses cost-based performance security and specific districtwide categories. Ask VDOT for the amount applicable to your activity and locality.

Does the 60-day notice provision erase existing obligations?

No. LUP-SB preserves liability on permits issued before the notice period expires and has additional conditions for active permits and continuous utility security.

Can I use a city right-of-way bond instead?

Do not assume so. LUP-SB is the VDOT instrument for the covered state-highway permit. Confirm the responsible road authority and required named recipient.

What follows provider issuance?

Complete the required execution and file the original with VDOT as directed. Obtain the land use permit and comply with its work conditions separately.

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