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Colorado Contractor License Bond

Construction in Colorado is rebounding well, with many contractors expecting to hire more employees in 2022. While there is no statewide requirement for Colorado contractor's license bonds, surety bonds are required in Denver and Arvada for many contractors to become fully licensed. Bonding also provides a competitive advantage for contractors.

How Does Contractor License Bond in Colorado Work?

A Colorado contractor's license bond provides a financial guarantee that the bonded contractor will abide by all state and local licensing requirements and codes as they complete the contracted labor. In the event of a dispute, the customer can file a claim against the bond. The claim triggers a thorough investigation by the surety company. If the surety determines the claim to be valid, they will promptly pay the claim up to the bond's full value. Then, the contractor must repay the bonding company to maintain their coverage.

Colorado Contractor's License Bond Requirements

The requirements for Colorado contractor license bonds vary by the city and location where the work is contracted. In Denver and Arvada, contractor license bonds are required for:

  • General contractors in Denver need a $50,000 bond.
  • Municipal contractors in Arvada need a $20,000 bond.
  • Sidewalk cement contractors in Denver need a $10,000 bond.
  • Sewer contractors in Denver need a $50,000 bond.

How to Get a Contractor License Bond in Colorado?

At Viking Bond Service, we streamline obtaining a surety bond into three simple steps:

Once you complete these steps, we will get you a competitive quote for your Colorado contractor's license bond.

The Cost of Contractor License Bond in Colorado

The Colorado contractor license bond cost is a small percentage of the bond's value, typically 1% to 5%. Regulations determine the bond value, and the rate charged is based on your credit rating. At Viking Bond Service, we offer a bad credit surety bond program to help contractors with problematic credit to get affordable bonding.

Why Are Contractors Required to be Bonded in Colorado?

Colorado contractor licensing bonds and other surety bond types protect investors, tax-payers, and the public at large when big money and safety are on the line. Even those who award smaller jobs appreciate the security of dealing with a bonded contractor, providing a competitive advantage for securing the job.

How Long Does a Contractor's License Bond in Colorado Last?

Most Colorado contractor license bonds are issued for 12-month terms, and the bond must be renewed each year to remain active. However, obtaining a bond with a longer active period may be possible. Nevertheless, if you have a lower credit score that requires a higher bond premium, annual renewals may benefit you, as maintaining good credit once bonded may lower your renewal rates.

Get Your Colorado Contractor License Bond Quote Today

Don't delay getting your Colorado contractor license bond. It is required in some cities for licensing and provides competitive benefits. Request a quote online or give us a call at 1-888-2-SURETY (1-888-278-7389). We look forward to being your surety partner.

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