What is a Colorado Contractor License Bond?
Colorado has no statewide contractor bonding requirement. However, you'll likely have to purchase a contractor bond when performing certain types of work in any county, major city or township.
A contractor surety bond is a type of insurance required by a licensing or permit authority before work on a project can begin. The bond acts as a financial guarantee that you'll follow all local contracting regulations and laws, plus provide your customers with ethical business practices and complete your projects according to contract details.
When you purchase a required contractor bond, you're making this promise to the local authority and to your customers.
Get Your Colorado Contractor Bond
$50,000 Bond
$50,000 Bond
$50,000 Bond
$25,000 Bond
$20,000 Bond
Bonds up to $25,000
1-Year Bond Starts at $100.00
1.0%-1.8% of the Bond Amount
2-Year Bond Starts at $175.00
1.0%-1.8% of the Bond Amount
Can't find what you need?
Let our bond experts help!
Get Started »
No obligation, takes 2 minutes
If you'd prefer, call us at
Who Is Required To Purchase a Colorado Contractor Bond?
This is not an exhaustive list because bonding requirements change every few years.
If you were told you purchase a surety bond by any local contracting authority and you don't see the bond listed on this page, request a quote anyway. We will be able to help you.
Here's a list of the most common Colorado contractor bonds:
- Denver right of way contractor projects
- Colorado Springs concrete and excavation contractor projects
- City of Aurora contracting for the public and right of way projects
- City of El Paso contracting for public and right of way projects
- City of Boulder right of way only projects
- Englewood right of way only projects
Again, this is not an exhaustive list of required contractor bonds. When you go to pull permits for any given project, this is when you'll know if a surety bond is required.
And we're ready to help you!
The Contractor License Bond Amounts
The amount of a surety bond is the coverage available to customers in the event a valid claim is made against the contractor.
(Keep in mind, in the case of a right-of-way bond, your customer is the local contracting authority.)
These amounts are set by the local contracting authority responsible for issuing licenses and permits. They're based on a historical assessment of complaints against contractors within their domain.
Denver Right of Way Contractors
| Denver Right-of-Way License | Bond Amount |
|---|---|
| Cement Sidewalk Contractor | $10,000 |
| Sewer Contractor | $50,000 |
| Excavation Contractor | $50,000 |
| Special Contractor | $10,000 |
| Structural Contractor | $25,000 |
| Alley Paving Contractor | $25,000 |
| Paving Contractor | $50,000 |
| General Contractor | $50,000 |
Colorado Springs Concrete Contractors
| License Classification | Bond Amount |
|---|---|
| Concrete Springs Concrete Bond | $5,000 |
Colorado Springs Excavation Contractors
| License Classification | Bond Amount |
|---|---|
| Concrete Springs Excavation Bond | $5,000 |
Aurora Contractors
| License Classification | Bond Amount |
|---|---|
| Aurora Contractor Bond | $20,000 |
Boulder Contractors
| License Classification | Bond Amount |
|---|---|
| Boulder Right of Way Bond | $5,000 |
Englewood Contractors
| License Classification | Bond Amount |
|---|---|
| Englewood Concrete Bond | $5,000 |
Just to recap, the bond amount is the maximum available coverage in the event of a legitimate claim made against the bond.
In most cases, contractors resolve any mistakes or disagreements before issues ever escalate to a claim. But it's good to understand this is a reality.
How Much Does a Colorado Contractor Bond Cost?
At a high level, the price of a contractor bond varies based on the type of bond required. And the price is determined from a rate quoted by a surety.
A surety is an insurance company that underwrites the surety bond. They perform an independent assessment to determine a rate using factors such as:
- Personal credit of the owner or owners
- Contracting experience and industry experience
- Any prior bond claims if owners have been licensed in the past
- The overall risk of complaints in the local area
This rate multiplied by the bond amount is the price you pay.
And this is why working with a specialized surety agency is the best way to purchase a Colorado contractor bond. Not only will you save money, but you'll save time.
How to Not Overpay for a Contractor Bond
Here's how this works.
For nearly every bonding requirement in Colorado we've secured low, fixed priced bonds with zero credit check required.
This means you can purchase the bond you need for your project today and likely have it issued the same day. Bonds are typically issued within 24 hours of purchase.
Currently the only two bonds that require a custom quote and price are:
- Denver general contractor bond
- Denver paving contractor bond
Let's look at the fixed cost bonds first.
Colorado Fixed Priced Contractor Bonds
Denver Sidewalk Bond
| Denver Right-of-Way License | Pricing Options | Purchase |
|---|---|---|
| Denver Sidewalk Contractor | $100 for 1 year term | |
| $175 for 2 year term | ||
| $250 for 2 year term |
Denver Sewer Bond
| Denver Right-of-Way License | Pricing Options | Purchase |
|---|---|---|
| Denver Sewer Contractor | $500 for 1 year term | |
| $875 for 2 year term |
Dever Structural Bond
| Denver Right-of-Way License | Pricing Options | Purchase |
|---|---|---|
| Denver Structural Contractor | $250 for 1 year term | |
| $437.50 for 2 year term |
Denver Water Service Bond
| Denver Right-of-Way License | Pricing Options | Purchase |
|---|---|---|
| Denver Water Service Contractor | $100 for 1 year term | |
| $175 for 2 year term | ||
| $250 for 2 year term |
Denver Special Contractor Bond
| Denver Right-of-Way License | Pricing Options | Purchase |
|---|---|---|
| Denver Special Contractor | $100 for 1 year term | |
| $175 for 2 year term | ||
| $250 for 2 year term |
Aurora License Bond
| Denver Right-of-Way License | Pricing Options | Purchase |
|---|---|---|
| Aurora Contractor Bond | $230 for 1 year term | |
| $402.50 for 2 year term |
Colorado Springs Concrete Bond
| Denver Right-of-Way License | Pricing Options | Purchase |
|---|---|---|
| Colorado Springs Concrete Contractor | $100 for 1 year term | Click to Buy |
| $175 for 2 year term | Click to Buy | |
| $250 for 3 year term | Click to Buy |
Englewood Right of Way Bond
| Denver Right-of-Way License | Pricing Options | Purchase |
|---|---|---|
| Englewood Concrete Contractor | $100 for 1 year term | |
| $175 for 2 year term | ||
| $250 for 2 year term |
Colorado Bonds Requiring a Custom Price Quote
Both the Denver general and paving contractor bonds have a bond amount of $50,000. The rates in the table below are from really good to average.
Just to remind you the price is the personalized rate you're quoted multiplied by the bond amount.
| Bond Amount | Premium Rate | Total Cost |
|---|---|---|
| $50,000 | 1% | $500 |
| $50,000 | 1.5% | $750 |
| $50,000 | 2% | $1,000 |
| $50,000 | 3% | $1,500 |
As a surety agency, we've seen hundreds of quoted rates for Denver contractors and these rates can vary. Finding the lowest rate can potentially save you hundreds of dollars.
Plus, because Surety Bonds Direct works with multiple A-rated sureties, we guarantee your bond will be accepted by the city of Denver or your money back.
Don't See The Contractor Bond You Need?
We can still help you.
Fill out our online bond quote form and tell us about the bond you need or call a bond specialist today at 1-800-608-9950.
Why is a Colorado Contractor Bond Required?
Nearly every Colorado city requires individuals and businesses to obtain a contractor license or permit in order to perform contracting services in their city.
This license process ensures each contractors has:
- A minimum level of experience
- Passed any required exams
- Registered the proper business forms
- Purchased the required insurance policies
And in many cases a contractor surety bond is required to be active before the license or permit can be issued.
What Does a Colorado Contractor Bond Protect Against?
The contractor bond (surety bond) is a type of insurance for the protection of:
- The city licensing and permit authority
- Customers of the contractor
- Hired subcontractors
It's unfortunate, but each year there will be a handful of contractors who will purposefully commit fraudulent acts to make more money on a project.
Examples of misconduct and fraud by a contractor can include:
- Breaking the terms of a construction project
- Never finishing projects
- Taking deposits or down payments and never starting or completing a project
- Replacing agreed upon materials with cheaper alternatives to increase profits
- Fail to pay subcontractors for completed work
- Negligent activity or poor signage when working on a public right of way project
- Altering contracts or overcharging for changes
If a contractor is deemed guilty of any of these actions, a claim can be made against their contractor license bond for financial repayment as long as the claim is deemed valid.
Remember the amount of coverage only extends to the bond amount.
What Happens After You Purchase Your Bond?
Once you purchase your bond, Surety Bonds Direct's issuance team will prepare your bond with the correct signatures, seals, and the required power of attorney so your bond will be accepted, guaranteed. If, for whatever reason, your bond is rejected, we'll fix the issue or refund your money, no questions asked.
Colorado allows us to email your bond to you. This makes it easy for you to print, sign, and submit your bond to the correct authority.
Don't put getting your bond off as the last step. You don't want your application to be delayed.
Get this done!
Renewing Your Contractor Bond
Right-of-way bonds are required and issued on a per project basis. This means right-of-way bonds typically don't have to be renewed unless the project lasts more than one year.
License bonds that are required for work on commercial or residential projects, typically must be renewed if you plan on taking on additional projects in the city.
If you need to renew a bond, Surety Bonds Direct makes the process nearly seamless.
Your bond specialist is responsible for managing your bond. This means they will contact you 30 to 40 days in advance to ensure your renewal premium is paid on time and your bond remains active.
Contractor License Bonds Are Continuous
A continuous bond means the original bond remains active as long as you pay the renewal premium.
Most of the time, you never have to worry about having a new bond issued or submitting a new bond back to the Board.
The only time you will have to file a new bond is if we find you lower pricing or the city raises the bond amount, requiring a new bond.
Contractor Bonds And Getting Your Colorado Business License/Registration
Every city contracting authority has it's similar licensing and permitting requirements including:
- Get your application fees and other payments together
- Taking an trade exam or local statues exam
- Purchase the required surety bond
- Purchasing the required minimum level of liability insurance coverage
- Submit your application review
For Denver contractors, we have written an article outlining how to get a Denver contractor license.
Here are important links for the Colorado cities mentioned on this page:
Can't find what you're looking for? Let us help!
Get Started » or, if you'd prefer, call us at
(No obligation, takes 2 minutes)