Surety Bond Encyclopedia

Contractor License ($5,000) Bond - Bancroft Clover Water & Sanitation District in Colorado

Brief Summary

Bancroft-Clover will not let a plumber or pipe layer connect to its water or sewer mains until the contractor is licensed and bonded with the district. The $5,000 bond plus a $30 annual license fee is a small cost for access to every job in the district for the year.

Contractors doing work within the Bancroft-Clover Water and Sanitation District in Lakewood must first obtain a contractor's license from the district by submitting a current certificate of liability insurance and a current $5,000 surety bond. The annual license fee is $30. Under the district's Rules and Regulations, connections to district mains must be made by licensed plumbers or pipe layers bonded with the district.

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How to Apply for a Contractor License ($5,000) Bond:

  • Hold the state plumbing or pipe layer license that applies to the work, plus Lakewood or Jefferson County licensing where applicable.
  • Use the business name exactly as it will appear on the district license.
  • Complete the bond application and review the quoted premium.
  • Receive the $5,000 bond naming Bancroft-Clover Water and Sanitation District as obligee.
  • Submit the bond, a current certificate of liability insurance and the $30 annual fee to the district.
  • Keep the bond current every year the license is held.

Detailed Information About the Colorado Contractor License ($5,000) Bond:

The license bond is not the project bond

Contractors often mix up two different bonds at Bancroft-Clover. The $5,000 bond on this page is the annual contractor license bond listed on the district's Water and Sewer Fees page. It is what lets a plumber or pipe layer work in the district at all.

Separately, the district's Rules and Regulations, amended and effective January 27, 2026, let the district require a performance and payment bond for a specific job, consistent with section 38-26-106 of the Colorado Revised Statutes. That project bond is set by the district at no less than half the cost of the work. Main line construction carries its own performance and maintenance bond equal to the contract price of the line. Having the $5,000 license bond does not satisfy either of those when the district asks for them.

Who needs it

The district states that contractors doing work within the district must first obtain a contractor's license from it. The Rules and Regulations define a licensed plumber or pipe layer as a person who has been bonded with the district and holds the appropriate state license, and City of Lakewood or unincorporated Jefferson County license where applicable. Service connections to district mains must be made by licensed plumbers or pipe layers bonded with the district.

What to file

The license requires a current certificate of liability insurance, a current $5,000 surety bond naming the Bancroft-Clover Water and Sanitation District, and the $30 annual contractor license fee. The district office is at 900 S. Wadsworth Blvd., Lakewood, CO 80226, 303-922-1113. The district does not post a bond form online, so confirm the current form and filing steps with the district before the bond is issued.

Insurance on district work

When the district requires insurance for a particular project, its rules set general liability limits of $1,000,000 per occurrence and $1,000,000 aggregate, plus workers compensation as required by Colorado law and motor vehicle liability.

Eligibility and Requirements for a Colorado Contractor License ($5,000) Bond:

  • Bond amount of $5,000.
  • Obligee shown as Bancroft-Clover Water and Sanitation District, Lakewood, Colorado.
  • Current certificate of liability insurance on file with the district.
  • Annual contractor license fee of $30.
  • Project specific performance or maintenance bonds when the district requires them, separate from this bond.

Colorado Contractor License ($5,000) Bond FAQs:

Does the $5,000 license bond cover my main line project?

No. The district can require a separate project bond of at least half the cost of the work, and main line construction needs a performance and maintenance bond equal to the contract price of the line.

Who has to be bonded with the district?

Any contractor doing work within the district. Connections to district mains must be made by licensed plumbers or pipe layers bonded with the district.

What does the license cost?

The district lists an annual contractor license fee of $30, along with the $5,000 bond and a current liability insurance certificate.

How is the premium set?

The surety prices the bond from the owner's credit and business history. You receive a quote after completing the application.

Contractor License ($5,000) in Other Colorado Locations

Bancroft-Clover Water & Sanitation DistrictCity of Trinidad, CO

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