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Highway Use Agreement

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Highway Use Agreement

This Highway Use Agreement ("Agreement") is entered into as of Effective Date: by and between Licensor Name: (hereinafter "Licensor") and Licensee Name: (hereinafter "Licensee").

WHEREAS

WHEREAS, Licensor is the governmental or quasi-governmental authority having jurisdiction and control over the public highway, right-of-way, or road segment identified in Exhibit A (the "Highway"); and

WHEREAS, Licensee proposes to perform work, conduct operations, or install temporary or permanent facilities within or across the Highway and seeks a revocable, non-exclusive permit to use the Highway for the purposes described herein; and

WHEREAS, Licensor is willing to grant limited use of the Highway to Licensee subject to the terms, conditions, and safeguards set forth in this Agreement to protect the traveling public, the Highway, and Licensor's interests.

SCOPE OF WORK

Licensee shall perform only the work expressly authorized by this Agreement and any attachments or approved plans. All work must be performed in accordance with the specifications, drawings, and traffic control measures approved by Licensor.

PAYMENT TERMS

As consideration for the permit and use of the Highway, Licensee shall pay Licensor the fees and charges described below. Payment is not a substitute for compliance with license obligations and does not limit Licensor's right to claim damages for noncompliance.

TERM AND TERMINATION

This Agreement commences on Start Date: and expires on End Date: unless earlier terminated in accordance with this Agreement.

Licensor may terminate this Agreement immediately upon written notice if Licensee fails to perform material obligations, creates an imminent hazard to the public, violates a law or regulation applicable to operations on the Highway, or fails to maintain required insurance or bonds. Termination shall be without prejudice to Licensor's right to recover damages.

CONFIDENTIALITY

Each party shall keep confidential and shall not disclose to any third party any non-public proprietary information received from the other party in connection with this Agreement, except where disclosure is required by law, order of a court or tribunal, or for the performance of this Agreement. Confidential information shall be used solely for performance under this Agreement.

INSURANCE, BONDING, INDEMNITY, AND RESTORATION

Licensee shall, at its sole cost and expense, procure and maintain insurance with limits not less than those set forth below and shall provide certificates of insurance naming Licensor as an additional insured prior to commencing work. Licensee shall also furnish a performance/restoration bond or security deposit sufficient to guarantee restoration and compliance.

Licensee shall indemnify, defend, and hold harmless Licensor, its officers, agents, and employees from and against all claims, liabilities, demands, losses, damages, costs and expenses (including reasonable attorney fees) arising out of or resulting from Licensee's use of the Highway, unless caused solely by the gross negligence or willful misconduct of Licensor. Licensee shall promptly restore the Highway to the condition existing prior to commencement of Licensee's activities, to Licensor's reasonable satisfaction.

PERMITS, TRAFFIC CONTROL, AND COMPLIANCE

Licensee shall be responsible for obtaining all other permits, clearances, and approvals required by law or by Licensor for the performance of the permitted work and shall implement traffic control measures in accordance with Licensor's standards and any applicable traffic control manual. All work shall comply with applicable federal, state, and local statutes, regulations, and standards.

INSPECTION, DEFAULT, AND REMEDIES

Licensor shall have the right to inspect the work, require corrective action, and order suspension of operations that create an immediate danger to persons or property. If Licensee fails to cure any material breach within the notice period, Licensor may suspend or terminate this Agreement, recover its costs to remedy the breach, and pursue any other remedies available at law or in equity.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. Venue for any action arising under this Agreement shall lie in a court of competent jurisdiction located within that state.

ENTIRE AGREEMENT

This Agreement, together with any exhibits, approved plans, insurance certificates, and permits referenced herein, constitutes the entire agreement between the parties relating to the subject matter and supersedes all prior negotiations and understandings, whether written or oral. Any amendment must be in writing and executed by both parties.

NOTICES

Licensor Name:

By:

Date:

Licensee Name:

By:

Date:

Enter text✕

What a Highway Use Agreement Covers

A Highway Use Agreement is a formal contract between a public authority and a private party that grants permission to occupy, modify, or temporarily use highway rights-of-way for work, events, utilities, or transport operations. It defines the exact location, permitted activities, required traffic controls, insurance and bonding requirements, restoration obligations, and the responsibilities for permits and costs. The agreement is commonly used for construction access, utility crossings, oversized loads, film or event closures, and any activity that affects public travel lanes or sidewalks. Properly executed agreements reduce ambiguities about liability and compliance.

Why a Highway Use Agreement Matters

A clear agreement allocates risk, documents required permits and insurance, and demonstrates compliance with state and local transportation rules to reduce liability and avoid work stoppages.

Why a Highway Use Agreement Matters

Who Typically Completes This Agreement

Multiple parties use highway use agreements when work or events will affect public roadways; responsibilities differ by role.

  • Municipal Agencies: Public works and transportation departments managing permits, inspections, and restoration obligations.
  • Contractors and Utilities: Road contractors, telecommunications, and utility companies arranging work that interrupts traffic flow.
  • Event Organizers: Film producers, parade coordinators, and promoters seeking temporary road closures or lane restrictions.

Choose the appropriate signatory based on legal authority, and confirm local permitting rules before execution.

Who Signs and Why

Public Works Director

As the local authority representative, the director approves terms, ensures compliance with traffic control standards, and authorizes inspections. Their signature confirms the municipality’s conditions and any required restorations or monitoring.

Authorized Contractor

A named contractor or utility signs to accept obligations for safe execution, procure specified insurance and bonds, and certify completion and restoration of the highway right-of-way.

Essential Sections of a Professional Highway Use Agreement

A professionally drafted agreement is modular: scope, safety controls, financial guarantees, and compliance provisions should be explicit to minimize disputes and facilitate permitting.

Parties & Scope

Identifies contracting parties, license type (temporary access, full closure, utility crossing), precise coordinates or mileposts, and the authorized activities within the right-of-way.

Location Details

Provides parcel identifiers, roadway names, work limits, staging areas, and any adjacent property impacts required for traffic control or restoration planning.

Timing & Schedule

Specifies start and end dates, hours of work, allowed work windows, and conditions for extensions or emergency acceleration of work.

Traffic Control Plan

Requires a certified traffic control plan, signage standards, lane closure procedures, and responsibilities for flagging and public notices.

Insurance & Bonding

Sets minimum insurance limits, required endorsements, performance bonds, and proof of coverage timelines tied to commencement of work.

Indemnity & Compliance

Allocates liability, describes indemnification obligations, references applicable federal, state, and local law, and includes remedies for breach or regulatory violations.

Required Information at a Glance

Parties: Full legal names
Location: Street, milepost, coordinates
Work Description: Detailed scope
Schedule: Start and end dates
Insurance: Carrier and limits
Signatures: Authorized signer info

Step-by-Step: Completing and Executing the Agreement

Follow a structured sequence: prepare documentation, obtain approvals, secure financial assurances, then execute and distribute signed copies to stakeholders.

  • 01
    Prepare Documents: Draft agreement and traffic control plan.
  • 02
    Submit Application: Send application, plans, and insurance certificates.
  • 03
    Obtain Approvals: Receive permit and any conditional requirements.
  • 04
    Execute & Archive: Sign, distribute, and retain copies for compliance.

Configuring an Online Highway Use Workflow

Set up a digital workflow to collect required attachments, authenticate signers, and automate reminders to streamline permitting and compliance.

Field Configuration
Applicant Information Require full legal name and contact fields
Document Upload Require traffic plan and insurance certificates
Signer Authentication Use email plus SMS code or two-factor
Automated Notifications Send reminders and permit expiration alerts

Digital Signing and Submission Considerations

Use a platform that supports audit trails, common integrations, and accepted file formats to simplify submission and recordkeeping.

  • Integrations: Salesforce, NetSuite, Microsoft 365
  • File Formats: PDF, DOCX, and flattened PDFs
  • Authentication: Email, SMS, and advanced options

Common Submission and Sharing Paths

After execution, route the signed agreement to regulatory contacts, insurers, and on-site supervisors. Maintain a central signed record for audits.

  • Submit to DOT: Provide signed agreement to state or local DOT office
  • Notify Insurer: Send certificate of insurance with policy details
  • Share with Contractor: Distribute approved plans and permit conditions
  • Archive Copy: Store signed PDF for inspections and audits

Typical Timelines and Deadlines to Expect

Deadlines vary by jurisdiction; start the permitting process early and confirm local lead times to avoid project delays.

Standard Application Lead Time:

Allow 30+ calendar days for review and approval

Emergency or Short-Notice Permits:

Some jurisdictions permit 48–72 hour expedited review

Insurance Proof Deadline:

Provide certificates before mobilization on site

Traffic Control Approval:

Obtain plan approval before lane closures commence

Recordkeeping Period:

Retain executed agreement for required retention period

Key Project Milestones

Track approvals and compliance milestones from application through closeout to reduce inspection issues and acceptance delays.

01

Application Submitted

Form, plans, and insurance uploaded to authority

02

Review & Conditions

Authority issues permit with required conditions

03

Pre-Work Compliance

Traffic control installed and inspected before work

04

Project Closeout

Site restored, final inspection, bond release

Common Preparation Mistakes to Avoid

  • Submitting incomplete traffic plans or failing to show certified flagging personnel leads to immediate work stoppages and permit rejections.
  • Using informal location descriptions instead of precise mileposts or coordinates creates ambiguity that can delay inspections and enforcement.
  • Failing to secure the correct insurance endorsements or naming the public authority as an additional insured risks denial of permit and contractor exposure.
  • Neglecting to confirm local RON or notarization rules causes signed documents to be rejected or require re-execution.

Penalties and Risks of an Incorrect Agreement

Permit Revocation: Immediate removal order
Civil Fines: Monetary penalties by authority
Liability Exposure: Contractor assumes accident risk
Work Stoppage: Project delays and additional costs
Insurance Denial: Claims may be refused
Contract Termination: Breach can void arrangements

Comparison: eSignature Options for Executing Highway Use Agreements

Basic pricing and capability differences across common eSignature providers. Confirm plan details and HIPAA or BAA availability with each vendor before procurement.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions About Highway Use Agreements

Answers to common execution, compliance, and practical questions about highway use agreements, electronic signing, and recordkeeping.


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