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A Three-Party Encroachment Agreement is required when a utility installation (typically water or sewer) is proposed within a non-controlled access NCDOT right-of-way, and the applicant (such as a developer or contractor) will install the utility, but long-term maintenance will later be transferred to the City of Raleigh.
This agreement includes three parties:
- NCDOT – Owner of the right-of-way
- Applicant – Entity installing the utility
- City of Raleigh – Long-term owner and maintainer
Each party must sign the agreement. A note or provision should be included to specify the conditions under which the City assumes maintenance responsibility.
Use:
NCDOT Form 16.1 or NCDOT Form 16.2.
When a Three-Party Encroachment Is Needed
Example: A developer is required to install a water line within an NCDOT right-of-way. After installation, the water line will be turned over to the City of Raleigh for maintenance.
City of Raleigh Three-Party Encroachment Process
- Applicant completes the NCDOT Encroachment Agreement listing:
- Applicant as the second party
- City of Raleigh as the third party
2. City staff updates the agreement to include:
- City Clerk or designee, City of Raleigh” in the witness signature block
- Paul Kallam, Director of Transportation, City of Raleigh” in the signee block
3. City staff routes the agreement for signature via DocuSign:
- Director of Transportation
- City Clerk or designee
4. City staff returns the fully signed agreement to the applicant
Encroachment Agreement Requirements
An encroachment agreement is required for any work or utility installation within NCDOT right-of-way. The applicant may also be required to provide Performance and Indemnity Bonds to protect NCDOT against potential damage.
Acceptable bond types:
- Corporate Surety Bond
- Continuing Indemnity Bond
- Certified or Cashier’s Check
Personal checks or certificates of deposit are not accepted. Bond amounts are specified in the approved encroachment package and must be submitted to the appropriate NCDOT District Office.