Surety Bond Encyclopedia

Right of Way Permit ($20,000) Bond - City of Aurora, CO in Colorado

Brief Summary

Aurora's Permit Center will not issue a public improvement permit for work in the right of way until a $20,000 bond is on file, and a standard one year bond does not satisfy it. The city wants two years from the date of issue and at least 12 months of coverage left when your job wraps up. Order it on those terms and the permit is not held up over the bond.

Contractors working in Aurora's public right of way need a $20,000 surety or warranty bond payable to the City of Aurora. Under City Code 126-172, as printed on the Public Improvement Permit application, the bond is valid for two years from its date of issue, is renewed annually after that, and must be written by a commercial financial institution or corporate surety company within the metropolitan area.

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How to Apply for a Right of Way Permit ($20,000) Bond:

Hold or obtain the Aurora Right of Way Contractor license through the Building Division.
Obtain a $20,000 bond payable to the City of Aurora, valid two years from its date of issue.
Make sure the bond names Arapahoe County, Colorado as venue for any suit to collect on it.
Submit the Public Improvement Permit application with subcontractor license numbers and certificates of insurance.
Submit a Traffic Control Plan and the work zone checklist for any work affecting traffic or parking.
Pay the permit and Street Occupancy Fees, and renew the bond annually to keep 12 months of coverage.

Detailed Information About the Colorado Right of Way Permit ($20,000) Bond:

Where the bond comes in

Aurora issues Public Improvement Permits through the Development Permit Center for street cuts, sidewalk repair and replacement, dry utility access, lane closures and other work in the public right of way. The permit application, Form A155, lists the bond under its license and insurance requirements, and the Building Division's contractor license sheet (revised 02/2026) requires the same $20,000 irrevocable license and permit bond for the Right of Way Contractor license.

The terms that trip people up

City Code 126-172 sets the conditions, and they are stricter than a typical permit bond.

The bond is valid for two years from its date of issue.
It is renewed annually after that, so a contractor working under it has at least 12 months of coverage left when it completes any construction project in the city.
It must be executed by a commercial financial institution or corporate surety company within the metropolitan area.
It must state that if the City of Aurora sues to collect on it, venue lies in Arapahoe County, Colorado.

A bond missing the venue clause, or one that will run out within a year of your completion date, is a common reason for a permit to stall.

Insurance and other permit items

The permit application cites City Code 126-170 for general liability coverage of at least $400,000 per occurrence for bodily injury or death and $100,000 per occurrence for property damage. The current contractor license sheet sets higher limits for right of way contractors, $1,000,000 per occurrence for general liability and $1,000,000 per occurrence for property damage, so carry the higher figures. Every subcontractor's license number must be listed on the application.

Any work that affects parking or traffic needs an approved Traffic Control Plan before the permit is issued, and Street Occupancy Fees apply whenever a sidewalk, alley or lane is closed. The PI permit instructions note that work zone closure fees double per day once a closure runs past its approved end date or goes over 90 days.

What it costs

You pay a premium rather than posting $20,000. The surety bases it on the owner's credit and the company's history, and the two year minimum term is priced into the first premium.

Eligibility and Requirements for a Colorado Right of Way Permit ($20,000) Bond:

Bond amount of $20,000, payable to the City of Aurora, under City Code 126-172.
Two year initial term and annual renewal after that.
At least 12 months of coverage remaining when any project in the city is completed.
Written by a commercial financial institution or corporate surety company within the metropolitan area.
General liability and property damage coverage at the limits on the current contractor license sheet.

Colorado Right of Way Permit ($20,000) Bond FAQs:

Is this bond tied to one permit or to my company?

The city describes it as covering contractors who operate under it, with coverage that must extend at least 12 months past completion of any project in Aurora. In practice one bond kept in force supports your right of way work in the city. Confirm with the Permit Center at 303.739.7420 if a project calls for additional security.

Why is a one year bond not enough?

City Code 126-172 makes the bond valid for two years from its date of issue and requires annual renewal so that 12 months of coverage remain when a job is finished.

Do I need a traffic control plan?

Yes, for any permit that affects parking or the movement of vehicles, bicyclists or pedestrians. The plan must be approved before the permit is issued, and the city says it is not obliged to accept work done before approval.

What happens if my lane closure runs long?

The PI permit instructions say work zone closure fees double per day for days past the approved end date or beyond 90 days.

How much does the bond cost?

The surety sets the premium after a credit review. It is a small part of the $20,000 bond amount for most contractors, and the two year term affects the first payment.