Colorado Contractors License Bond Requirements
Currently, there are no statewide bonding requirements for Colorado contractors. The cities of Arvada and Denver, however, require some types of contractors to be licensed, and obtain a contractor license bond, as part of the process.
Specifically, municipals contractors in Arvada as well as cement sidewalk, sewer and general contractors in Denver are subject to varying bonding requirements.
These types of bonds– like other surety bonds– are an agreement between three parties:
- The contractor (principal)
- The state (obligee)
- The bonding company (surety)
The bonding company backs the agreement and vouches that the contractor is of good standing, and financially capable of compensating claims. This makes the surety financially responsible for the actions of the contractor, but the ultimate responsibility is always born by the contractor.
If you don’t want to proceed with your application just yet, you can learn more about contractor bonds in the state of Colorado in the sections below. Read on for total bond amounts and expected costs.
If you need help on our part, you can find us at (866)-450-3412.
Colorado Contractors License Bond Cost
Have a look at the table below for a breakdown of bonding costs based on location and contractor license type. The total bond amount refers to the maximum compensation possible, while the other columns contain expected premiums based on credit score.
|Location||Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Arvada||Municipal Contractor's License Bond||$20,000||$150-$300||$200-$600||$500-$1,000||$1,000-$2,000|
|Denver||Sewer and General Contractor License Bonds||$50,000||$100||$100||$125-$250||$250-$500|
|Cement Sidewalk Contractor Bond||$10,000||$100-$150||$100-$300||$250-$500||$500-$1,000|
These estimates are provided for your convenience only. The only way to get an exact quote is by submitting our online application. Check out our surety bond cost guide for more information on the subject.
Getting Bonded with Bad Credit
We run a Bad Credit Surety Bonds Program, thanks to which you can get bonded regardless of your credit score. However, due to the higher risk involved for sureties, your premiums will usually vary between 3% and 10%.
If you take steps to improve your credit score, you can expect lower premiums when your bond renewal is due. Other factors that you can use in your favor is the age of your business (not applicable for new businesses) financial statements showing solid finances or a resume demonstrating your experience in the field.
Start Your Application Today
You’re just a few steps away from obtaining your Colorado contractors license bond. Start by submitting our simple one-page application and you will receive a free bond quote.
Our agents are available if you have questions for them or need any assistance. The next steps involve completing the bond form (most of which we do for you), paying your quote, and signing an indemnity agreement with the surety.
As soon as we get the surety’s signature we will send you a digital copy on your email. A hard copy will be mailed to you shortly after that as well.
Colorado Contractor License Requirements
There is no statewide contractor licensing board in Colorado, which means licensing is handled on a local level. To find out what your exact requirements are, contact your local authority.
If you’re required to post a contractor license bond, it’s also important to inquire about your obligations under its terms. Bond claims can be an extremely unpleasant scenario for contractors, costing them a lot in both time and resources. In general, you should be aware of all applicable building codes, pay your taxes on time and stick to the terms of the contracts you enter in.