Do You Need a Colorado Contractor License Bond?

Is there a Colorado contractor license bond to buy?

The question most readers bring to this page is whether a Colorado contractor license bond exists at the state level, and the state licensing sources we checked list none. The Title 12 licensing articles we checked cover electricians and plumbers, and both articles contain no bond or surety wording at all. The Title 12 articles we checked include no general contractor license; building contractors are licensed locally by cities such as Denver and Aurora.

The state board rules are not among the sources we checked, so confirm with the State Electrical Board or State Plumbing Board before you treat "no bond" as settled for your registration. The licensing board has the final word on what a given license or registration needs.

Denver right-of-way license bonds

Denver's Community Planning and Development issues contractor licenses and certificates for construction and trade work in the city. Denver does not accept or reciprocate licenses from other counties or states, and a Colorado electrical or plumbing license will substitute for a supervisor certificate. Licenses renew every one to three years depending on type.

Denver's building contractor licenses carry no bond on the official pages. The application steps for Class A through D, mechanical, electrical, plumbing and fire protection licenses cover the code chapter, a Supervisor Statement of Responsibility, Secretary of State documents and state trade cards, with no bond or insurance step. The same page says right-of-way and sewer licenses follow a different process.

Right-of-way licenses are where Denver's bonds live. They are required if you will perform work in the public right-of-way or on other public property of the City and County of Denver. Each type calls for five years of verifiable experience in the trade, no test, and lists a bond form and insurance requirements. The right-of-way general contractor bond is set under Section 339-D of the Denver Revised Municipal Code, and executing the bond is a condition precedent to the license. That $50,000 bond is a right-of-way license bond, not a bond for the Class A building license.

The cement sidewalk bond runs under Denver code section 49-646. Denver's right-of-way page also lists an alley paving license with a bond form; that form is not among the sources we checked, so ask Denver for its amount.

The bond forms name the City and County of Denver as obligee and are filed with the Manager of Public Works. The surety may terminate the bond by written notice sent by certified mail, and the bond ends 30 days after that notice is received. The bond condition requires the contractor to indemnify the city from damages, claims, demands and expenses of every kind.

Right-of-way applicants also need insurance: general liability of $1,000,000 each occurrence and $2,000,000 aggregate, auto coverage with a $1,000,000 combined single limit, and the City and County of Denver listed as additional insured on all policies.

By contrast, Denver's construction licenses (General Class A, Building B, Residential C, Specialty D and mechanical) cost $250 and renew every three years, plumbing costs $160 every two years, and the electrical license is $0 every three years.

Public project contract bonds under C.R.S. 38-26-106

Public works bonds are contract bonds, not license bonds, but Colorado contractors meet them often. Under C.R.S. 38-26-106, a contractor awarded a contract for more than $50,000 for public works for a county, city and county, municipality, school district or other political subdivision must furnish a bond. For state public works, the threshold is a contract of more than $150,000. The penal sum must be not less than one-half of the total amount payable under the contract, and a cashier's check may be accepted in lieu of a bond.

What you pay is a small share of the bond amount, set by the surety from your credit and business details.

Frequently asked questions

Contractors working across state lines can compare the rules on our Utah, Wyoming, Nebraska, Kansas, Oklahoma and New Mexico contractor license bond pages.