Maintenance - Multiple Occurrence Work - 2 year term Bond - Aspen, CO in Colorado

Brief Summary

Aspen will not issue a Right of Way permit without a maintenance bond on the City's own form, and that bond has to stay in force for two full years after the work passes inspection. A surety bond meets the requirement without tying up cash for the whole warranty period, and the executed form uploads straight into the Aspen Permit Portal with the rest of the permit package.

The City of Aspen requires a maintenance bond with every Right of Way permit for excavation or any alteration in the public right of way. The penal sum is the greater of $2,500 or the total value of the work, the City of Aspen is the obligee, and the bond is non-cancelable for two full years. It is released only after the City's final inspection at the two-year mark.

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How to Apply for a Maintenance - Multiple Occurrence Work - 2 year term Bond:

• Confirm the total value of the work on the permit. The bond equals that value or $2,500, whichever is greater.
• Confirm with City of Aspen Engineering that Multiple Occurrence Work is the correct category for your permits.
• Have the contractor's legal name and address exactly as they appear on the Right of Way permit application.
• Complete the bond application and review the quote.
• Receive the executed bond on the City's Maintenance Bond form with only the Multiple Occurrence Work box checked and the attorney-in-fact signature.
• Upload the bond with the site plan and traffic control plan through the Aspen Permit Portal.

Detailed Information About the Colorado Maintenance - Multiple Occurrence Work - 2 year term Bond:

The amount is not a flat figure

Most contractors expect a set bond amount. Aspen does not use one. The City's Right of Way Permit page and its Maintenance Bond form set the penal sum at the greater of $2,500 or the total value of the work to be performed. A small sidewalk repair is bonded at the $2,500 floor. A utility trench valued at $40,000 is bonded at $40,000.

What the bond guarantees

The City's form, ENG-Policy-205-A, names the City of Aspen, Colorado as obligee. The contractor, as principal, guarantees that materials and workmanship will be free from defects and kept in continuous good order, and agrees to repair or replace all defects for two years from the date the final Inspection Log shows 100% satisfactory completion. The bond also protects the City from losses and damages to life or property tied to the work. The surety must be qualified to transact business in Colorado, and the bond is signed by the surety's attorney-in-fact.

Multiple Occurrence Work and the other categories

The form offers three categories: Single project, Multiple Occurrence Work and Blanket Coverage. Only one box may be checked. This page covers the Multiple Occurrence Work category. The form does not spell out how the penal sum is figured when one bond supports more than one permit, so confirm the amount and the category with City of Aspen Engineering before the bond is issued.

The two-year clock

Once the work is complete the permit moves to Probationary Acceptance, and all work must withstand acceptable conditions for the next two years. The City performs the final inspection two years from the probationary acceptance date. If the work passes, the maintenance bond is released and the permit is closed. The bond is non-cancelable for two full years from issuance, so plan on it staying in force for the entire period.

Permit fees are separate from the bond

The City charges its own permit fees: $700 for sidewalk and pedestrian improvements only, $1,750 for service line or telecom utility trenching with asphalt paving, $2,150 for main line utility trenching, $700 for critical public infrastructure work by a utility provider, $1.50 per square foot for right of way areas over 5,000 square feet, and $210 for Parks review where it applies. None of these is paid through the bond.

Eligibility and Requirements for a Colorado Maintenance - Multiple Occurrence Work - 2 year term Bond:

• City of Aspen, Colorado named as obligee on the City's Maintenance Bond form, ENG-Policy-205-A.
• Penal sum equal to the greater of $2,500 or the total value of the work.
• Surety qualified to transact business in the State of Colorado.
• One category checked on the form: Single project, Multiple Occurrence Work or Blanket Coverage.
• Bond non-cancelable for two full years from the date of issuance.
• Premium set by surety underwriting from the bond amount, the two-year term and the contractor's credit, experience and financial condition.

Colorado Maintenance - Multiple Occurrence Work - 2 year term Bond FAQs:

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