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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Arvada will not issue a municipal general contractor's license until the $20,000 bond is on file, and without that license you cannot pull a permit for work in the city's streets, easements or other public property. You pay a premium instead of tying up $20,000 in cash, and the bond is written on the city's own form so it can go straight into your license packet.
Arvada City Code Sec. 78-185 requires a $20,000 municipal general contractor's license bond before the city grants the license. The bond runs for one year, is written on city prepared forms, and carries a warranty period of at least two years. It protects the City of Arvada against inferior materials and workmanship and against damage caused by willful disregard of city code and requirements.
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Arvada City Code Sec. 78-184 makes it unlawful to build, alter, repair, remove or demolish any structure, utility or general public improvement in the city without a municipal general contractor's license. Article II of Chapter 78 covers storm drains, irrigation ditches, sewers, water lines, curbs and gutters, sidewalks, streets, traffic control devices and other improvements built in public rights of way, public easements and on other public property. The licensed contractor is responsible for all work on the project, including work done by subcontractors.
A property owner or developer can still get the construction permit under Sec. 78-187, but only by holding the license or hiring a contractor the city has already licensed.
Under Sec. 78-185 the bond protects the City of Arvada against inferior material and performance, including damage that results from willful disregard of the City Code and city requirements. It is a one year bond in the principal amount of $20,000, written on city prepared forms, with a warranty period of at least two years. That warranty tail matters. A claim for defective work can surface well after the license year ends, so the surety stays on the hook for the warranty period.
The obligee is the City of Arvada. Use the city's bond form rather than a generic one, and attach the surety's power of attorney.
Sec. 78-186 also requires certificates of insurance and additional insured endorsements before the license is granted. General liability must be at least $1,000,000 per occurrence and at least $2,000,000 in the aggregate, written by a carrier rated A-:VII or better by A.M. Best and authorized in Colorado, with the city named as additional insured. You also need proof of statutory workers' compensation coverage. License fees follow the city's adopted fee schedule for right of way work permits and services.
You pay a premium, not the full $20,000. The surety sets the rate after reviewing the owner's personal credit and the company's history, and stronger credit generally earns a lower rate.
Work on general public improvements in the city, such as streets, sidewalks, curbs and gutters, storm drains, sewers, water lines, irrigation ditches and traffic control devices in public rights of way, easements or other public property. Sec. 78-184 of the City Code requires the license before any of that work starts.
Sec. 78-185 sets the bond as a one year bond with a warranty period of at least two years. Defects in public improvements often show up later, so the city keeps the right to claim against the bond for poor materials or workmanship during that warranty period.
No. Sec. 78-186 requires general liability coverage, an additional insured endorsement naming the city and workers' compensation coverage in addition to the bond. The license is not granted until all of it is on file.
No. It protects the City of Arvada. If the surety pays a valid claim, you must repay the surety for the amount paid and its costs.
The surety sets the premium after a credit review of the owners. It is a small part of the $20,000 bond amount for most applicants, and the exact figure depends on credit and business history.
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