Iowa Utility Installation Right-of-Way Bond

Iowa requires this bond when utility companies or contractors install, adjust, or relocate facilities in public rights-of-way. For state primary roads, the Iowa DOT may require bonds when work accommodates a road project, involves unusual installations or abnormal site conditions, when the utility owner has a history of performance issues, or for longitudinal freeway occupancy. Many Iowa cities also require this bond for any utility work in city-controlled rights-of-way. The bond must be filed before work begins.

This performance bond protects municipalities and the Iowa DOT from financial losses due to improper utility installation work. Claims can be filed if the contractor fails to promptly relocate facilities for road projects, fails to restore damage from utility occupancy, or installs facilities in non-compliant locations or methods. The Iowa DOT can make claims for up to 2 years after bond release. The bond ensures cities and the state don't bear the cost of correcting substandard work or repairing damage to public infrastructure.

The bond amount varies by jurisdiction. For work in state primary road rights-of-way under Iowa DOT jurisdiction, the minimum is $10,000 per permit (higher amounts may be required based on project scope). Municipal requirements vary—cities like Davenport require $5,000-$25,000 depending on contractor type, while City of Ankeny has its own utility installation right-of-way bond requirements. Check with your specific municipality or the Iowa DOT to confirm the exact amount needed for your project.