Surety Bond Encyclopedia

Right of Way Permit Bond - City of Brighton, CO in Colorado

Brief Summary

Brighton will not issue a right-of-way permit until a financial guarantee is on file, and the city no longer takes cash escrow. A surety bond lets you meet that requirement for an annual premium instead of tying up cash for the life of the job and the warranty period that follows.

The City of Brighton requires a bond for any work in the public right-of-way. The minimum is $5,000 for repair or replacement work. Once job valuation passes $4,348, the bond must equal 115% of the total valuation. New infrastructure is bonded from a Schedule of Estimated Improvements. The bond is written on the city's ROW/New Construction Permit Bond form with the City of Brighton as obligee.

We can help with all Colorado bonds!

How to Apply for a Right of Way Permit Bond:

  • Work out the job valuation, materials and labor, before you request the bond.
  • Apply $5,000 as the floor, or 115% of valuation when the job is valued above $4,348.
  • For new infrastructure, use the amount on the accepted Schedule of Estimated Improvements.
  • Have the surety complete Brighton's ROW/New Construction Permit Bond template with the work description and bond amount.
  • Attach the surety's power of attorney, certified to include the bond date.
  • Upload the bond with the traffic control plan and site plan when applying through the city's permit portal.

Detailed Information About the Colorado Right of Way Permit Bond:

How much bond you need

The amount is not a single flat number. It depends on the job. Brighton's Right of Way Permit application sets three rules.

  • Repair or replacement work in the right-of-way carries a minimum bond of $5,000.
  • When the job valuation is greater than $4,348, the bond must be 115% of the total valuation.
  • New infrastructure construction is bonded at the amount shown on a Schedule of Estimated Improvements, taken from a development agreement or from a separate form the city has accepted for the project.

The 115% figure covers the full scope of work, materials and labor. The city's financial guarantee policy applies the same rule to public infrastructure.

Who posts it

The contractor of record posts the bond. Brighton's permit counter requests a financial guarantee for any work in the public right-of-way and for public infrastructure construction before a permit is issued. The bond form recites that the principal is licensed as a contractor or builder under the Brighton Municipal Code, so expect to hold a current Brighton contractor license as well. No development agreement is needed for this type of bond.

What the bond promises

On the city's template, the contractor agrees to follow Brighton's codes and ordinances for the permitted work, to hold the city and its officials and employees harmless from claims and damages caused by the work, and to pay tort judgments that arise from negligence in that work. Coverage runs for 12 months from completion of each permitted job, and the form provides accruing coverage up to the bond amount for each separate permit. The surety can cancel only by filing a 90 day notice with the city, and liability already accrued is not discharged.

When it is released

Brighton holds the bond until all work on the permit has passed construction acceptance. If the scope requires a warranty, the permit application says 15% of the actual construction cost is held for one year and then released after a passing final acceptance inspection. For public infrastructure under the city's financial guarantee policy, the 15% holdback runs two years or the period in the development agreement. Ask the inspector which warranty period applies to your permit.

Eligibility and Requirements for a Colorado Right of Way Permit Bond:

  • Surety duly qualified as a surety company under Colorado law.
  • City of Brighton named as obligee.
  • Principal licensed as a contractor or builder under the Brighton Municipal Code.
  • A CDOT permit as well when the job sits in state right-of-way.
  • Bond kept in force until construction acceptance and through any warranty holdback.

Colorado Right of Way Permit Bond FAQs:

How do I figure the bond amount for my job?

Start with the total job valuation, materials and labor. If it is $4,348 or less, the bond is the $5,000 minimum. Above that, multiply the valuation by 115%. New public infrastructure is bonded at the amount on the Schedule of Estimated Improvements.

Can I post cash instead of a bond?

No. Brighton's Development Services page says the city no longer accepts cash escrow deposits as a financial guarantee.

When does the city let go of the bond?

After all work on the permit passes construction acceptance. If a warranty applies, 15% of the actual construction cost stays in place for the warranty period, and the rest is released after final acceptance passes.

How is the premium set?

The surety prices it from the bond amount and an underwriting review of the contractor, usually including owner credit. Larger jobs mean a larger bond and a larger premium.

Official and Additional Resources for the Colorado Right of Way Permit Bond:

Right of Way Permit in Other Colorado Locations

City of Cherry Hills Village, COCity of Greeley, COCity of Littleton, COEl Paso County, COGrand County, COLa Plata County, COTown of Grand Lake, COTown of Winter Park, CO

All Colorado Right of Way bonds · All City of Brighton, CO bonds · All Colorado surety bonds