While Colorado does not impose a statewide contractor bond requirement, some municipalities mandate contractors to secure a license bond before beginning work. These bonds help ensure compliance with local regulations and safeguard clients against incomplete or improper work.
This overview provides insight into which contractors are subject to local bonding rules, why bonds may be required, and how to get or maintain a Colorado contractor license bond to stay in good standing locally.
Colorado Contractor License Bond Requirements
Unlike most states, Colorado does not have a statewide contractor license bond requirement. However, many cities and counties within the state do.
These bonds serve as a financial guarantee that contractors will adhere to local building codes, regulations, and ethical standards. They protect clients and the public from potential damages resulting from contractor negligence or misconduct.
The first step for any contractor is to confirm the bonding requirements of the city or county where they plan to work, as these rules can vary widely between jurisdictions. For example, contractor bonds in Denver include a $50,000 requirement for general contractors, while Colorado Springs mandates a $5,000 bond for excavation contractors.
Bryant Surety Bonds offers all municipality-specific Colorado contractor license bonds and can assist you in securing the necessary one for your jurisdiction. Complete a quick online application today for a free quote.
How Much Does a Colorado Contractor License Bond Cost?
Contractor license bonds are calculated as a percentage of the bond amount required by your city or county. This annual premium is typically a small fraction of the total bond.
The cost depends on factors such as personal credit, business finances, industry experience, and overall stability. Applicants with strong credit often qualify for rates between 1% and 3% of the bond amount.
For instance, a $50,000 bond for construction in Denver could cost you around $500 per year.
Applicants with lower credit scores can still obtain the required bond, however, as higher-risk profiles, their premium rates may be slightly higher. The good news is that there are strategies to improve your credit score, which can help reduce bond costs over time.
The list below shows typical bond requirements across various Colorado cities and counties, along with their estimated annual costs.
Please note: These figures are meant as a general reference. Local rules and bond amounts can change, so always verify the current laws directly with the city or county where you plan to work.
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| Adams County Right-of-Way Contractor Bond | $5,000 | Starts from $100 |
| South Adams County Water & Sanitation District Contractor Bond | $5,000 | Starts from $100 |
| Applewood Sanitation District Drain Layer's License Bond | $20,000 | Starts from $200 |
| City of Arvada Municipal Contractor Bond | $20,000 | Starts from $200 |
| Bancroft-Clover Water & Sanitation District Permit Bond | $1,000–$10,000 | Starts from $100 |
| Bear Creek Water & Sanitation District Contractor Bond | $10,000 | Starts from $100 |
| Berkeley Water and Sanitation Sewer Line Repair Permit Bond | $10,000 | Starts from $100 |
| City of Canon City Contractor Bond | $5,000–$15,000 | Starts from $100 |
| City of Centennial Contractor Bond | $20,000 | Starts from $200 |
| Cherry Creek Valley Water and Sanitation District Construction License and Maintenance Bond (Tier 1) | $1,000–$50,000 | Starts from $100 |
| Cherry Creek Valley Water and Sanitation District Construction License and Maintenance Bond (Tier 2) | $50,001–$100,000 | Starts from $500 |
| City of Colorado Springs Concrete Contractor Bond | $5,000 | Starts from $100 |
| City of Colorado Springs Excavation Contractor Bond | $5,000 | Starts from $100 |
| City of Dacono Excavation Permit Bond | $2,500 | Starts from $100 |
| City and County of Denver General Contractor Bond | $50,000 | Starts from $500 |
| City and County of Denver Cement Sidewalk Contractor Bond | $10,000 | Starts from $100 |
| City and County of Denver Excavation Contractor License Bond | $50,000 | Starts from $500 |
| City and County of Denver Paving Contractor Bond | $50,000 | Starts from $500 |
| City and County of Denver Special Contractor Bond | $10,000 | Starts from $100 |
| City and County of Denver Structural Contractor Bond | $25,000 | Starts from $250 |
| City and County of Denver Sewer Contractor Bond | $50,000 | Starts from $500 |
| City of Durango Contractor Bond | $5,000 | Starts from $100 |
| El Paso County Permit Compliance Bond | $20,000 | Starts from $200 |
| City of Englewood Demolition Contractor Bond | $1,000 | Starts from $100 |
| City of Federal Heights Contractor Bond | $5,000 | Starts from $100 |
| Town of Firestone Contractor Bond | $2,000 | Starts from $100 |
| City of Fort Collins Right of Way Contractor Bond | $100,000–$250,000 | Starts from $1,000 |
| City of Fountain Contractor Bond | $5,000 | Starts from $100 |
| Fremont County Contractor Bond | $2,000 | Starts from $100 |
| Town of Georgetown Excavation Bond | $2,000 | Starts from $100 |
| Green Mountain Water & Sanitation Plumbing Contractor Bond | $25,000 | Starts from $250 |
| City of Lafayette Payment Bond | $1,000–$100,000 | Starts from $100 |
| City of Lafayette Street Cut Permit | $5,000 | Starts from $100 |
| City of Lakewood Contractor Bond | $25,000 | Starts from $250 |
| Northwest Lakewood Sanitation District Contractor Bond | $10,000 | Starts from $100 |
| City of Littleton Contractor Bond | $20,000 | Starts from $200 |
| City of Northglenn Single Job Right-Of-Way Bond (Min. $5,000) | $1,000–$50,000 | Starts from $100 |
| City of Northglenn Single Job Right-Of-Way Bond (Higher Tier) | $50,001–$150,000 | Starts from $500 |
| North Washington Street Water and Sanitation District Contractor Bond | $5,000 | Starts from $100 |
| Platte Canyon Water and Sanitation District Drain Layer or Plumbing Contractor Bond | $10,000 | Starts from $100 |
| City of Pueblo Contractor Bond | $5,000 | Starts from $100 |
| County of Pueblo License and Permit Bond | $10,000 | Starts from $100 |
| Southwest Metropolitan Water and Sanitation District Plumbing or Drain Layer Contractor Bond | $10,000 | Starts from $100 |
| St. Vrain Sanitation District Maintenance Bond | $5,000–$25,000 | Starts from $100 |
| Town of Superior Right of Way Bond | $1,000–$100,000 | Starts from $100 |
| Teller County Specialty License Contractor Bond | $5,000 | Starts from $100 |
| City of Thornton Warranty Bond | $5,000–$500,000 | Starts from $100 |
| City of Trinidad Contractor Bond | $5,000 | Starts from $100 |
| Westridge Sanitation District Contractor Bond | $1,000 | Starts from $100 |
| Westridge Sanitation District Warrant and Maintenance Bond | $1,000–$100,000 | Starts from $100 |
| City of Westminster Contractor Bond (General) | $5,000 | Starts from $100 |
| City of Westminster Contractor Bond (Specialty) | $10,000 | Starts from $100 |
| City of Westminster Landscaping & Private Improvements Performance Bond | $1,000–$500,000 | Starts from $100 |
| City of Wheat Ridge Contractor Bond | $10,000 | Starts from $100 |
| City of Wheat Ridge Sanitation Warranty and Maintenance Bond | $1,000–$100,000 | Starts from $100 |
Not sure what your bond will cost? Try our free calculator to see an instant estimate. If you’d like a more precise offer, submit a quick application and we’ll provide a quote designed specifically for your business.
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Get a free exact quote Get another estimateColorado Contract Bonds
Contractors in Colorado may also need to secure a contract bond, such as a bid bond, performance bond, or payment bond, depending on the project. Unlike license bonds, these are tied to a specific job and guarantee that contractual responsibilities will be carried out as agreed.
Contract bonds are frequently required on public works projects and are often used in large-scale private construction to protect project owners and ensure compliance with contract terms.
How to Get a Colorado Contractor License Bond
Since Colorado contractor bonding is handled at the local level, the process begins with confirming what your city, county, or district requires. Once you know the bond type and amount, securing it through Bryant Surety Bonds is fast and straightforward.
Just follow these steps:
- Apply online: Provide your business information, the jurisdiction where you plan to work, and the bond type or amount required.
- Get a tailored quote: We’ll prepare a competitive, no-obligation premium estimate and send it to you on the same day.
- Secure your bond: Once you approve and pay the bond premium, the official document is issued instantly.
Unlike obtaining a license or permit, getting bonded does not take weeks of preparation. Whether you need a $1,000 bond or a $50,000 bond, we’ll guide you through the process and deliver your bond promptly so you can begin work without unnecessary delays.
If you also need help with your licensing application, refer to our Colorado Contractor License Guide for a complete overview of requirements and step-by-step instructions.
FAQs
Do I need a Colorado contractor bond if I only work on private projects?
Not always. Most local contractor bond requirements apply to licensing or permits issued by municipalities, which are often tied to both public and private construction. Even if your work is primarily private, you may still need a bond to legally hold a license or perform certain types of jobs within a jurisdiction.
Can I use one contractor bond for multiple cities in Colorado?
No. Contractor bonds in Colorado are issued on a jurisdiction-by-jurisdiction basis. If you plan to work in more than one city or county, you’ll need to meet each local authority’s bond requirement individually. Our team can help you secure the necessary bonds for all the places where you plan to operate.
What happens if a claim is made against my contractor bond?
Bryant Surety Bonds can help you understand your obligations and support you throughout the process.
Generally, if a client, property owner, or city files a valid claim, the surety pays damages up to the bond amount. You are then responsible for reimbursing the surety. Maintaining compliance with codes and ethical practices helps you avoid claims and protect your business reputation.
How do I prove that I’m bonded when applying for a license?
Once you purchase your contractor bond, we will issue the official certificate. This document is filed directly with the municipality or provided to you to submit with your license application. It serves as proof that your financial guarantee is in place.
Additional Resources
- Applying for or Renewing a License or Permit in Colorado
- Denver Contractor License Application
- Helpful Resources for New Contractors in Denver
- Denver Contractor Renewal Requirements
