Surety Bond Encyclopedia

Blanket Right of Way Bond - City of Canon City, CO in Colorado

Brief Summary

If your crew pulls more than ten right-of-way permits a year in Cañon City, one $15,000 annual bond can replace a separate bond on every job. That means no new bond request each time you open a street or pour a curb, and no waiting on a surety before each permit is issued.

Cañon City Municipal Code 12.12.070(H) requires a performance bond before any right-of-way permit is issued. Permittees who typically pull more than ten permits a year may instead post one $15,000 bond annually. The bond names the City of Cañon City as obligee, must be approved by the Public Works Director and the City Attorney, and runs for two years from the date of each excavation.

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How to Apply for a Blanket Right of Way Bond:

  • Confirm you typically pull more than ten right-of-way permits a year in Cañon City.
  • Hold a current Cañon City contractor license under Chapter 5.12.
  • File a certificate of general liability insurance that meets 12.12.070(G).
  • Request a $15,000 bond naming the City of Cañon City as obligee.
  • Email the bond and insurance certificate to rowpermitting@canoncity.org.
  • Renew the bond each year so it stays in force for every permit you pull.

Detailed Information About the Colorado Blanket Right of Way Bond:

Who qualifies for the blanket bond

The blanket option is not open to everyone. Section 12.12.070(H)(1) of the Cañon City Municipal Code allows it only for permittees who typically have more than ten permits a year. Those permittees may provide one $15,000 bond annually instead of a separate bond for each permit. A contractor who pulls a handful of permits a year posts a per job bond instead, sized at 115% of the city's estimate of restoration cost or $5,000, whichever is greater.

What the bond guarantees

The condition of the bond is that the permittee will follow every city ordinance and specification for excavating or working in any street, alley, sidewalk, other public right-of-way or city property. If the permittee breaches it, the Public Works Director notifies the surety and has the work corrected, and the City Attorney can sue on the bond to recover what the city spent. The bond must stay in force for two years after the date any excavation is made. A contractor whose bond has been declared forfeit cannot get another permit until the bond is reinstated or a new one is filed.

What else the city needs

The bond is one of three prerequisites. The city's ROW permit page says work in the right-of-way requires a current Cañon City contractor license, insurance and a bond. Chapter 5.12 governs licensing, and contractor licenses expire every December 31. Section 12.12.070(G) requires general liability insurance with completed operations coverage for two years from each permit application, with the city named as additional insured. Permits must be obtained at City Hall, 128 Main Street, and bond paperwork goes to rowpermitting@canoncity.org.

Who is exempt

Under 12.12.070(H)(6), the bond rules do not apply to municipalities, quasi-municipal entities, ditch companies, utilities or the City itself. Closing a right-of-way without other work does not require a bond, according to the city's permit application.

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

  • Bond amount of $15,000, posted once a year.
  • Approval by the Public Works Director as to sufficiency and by the City Attorney as to form.
  • Coverage for two years from the date of any excavation.
  • A city permit fee of $50 plus $70 per inspection site visit under the current fee schedule.
  • Work built to the City of Cañon City Standard Construction Specifications.

Colorado Blanket Right of Way Bond FAQs:

Can any contractor use the $15,000 blanket bond?

No. The code limits it to permittees who typically have more than ten permits a year. Everyone else posts a bond for each permit at 115% of the city's restoration estimate or $5,000, whichever is greater.

How long does the bond have to stay active?

Section 12.12.070(H)(3) requires the bond to remain in full force for two years from the date any excavation is made. Keep the annual bond renewed so earlier jobs stay covered.

Do utilities need this bond?

No. Municipalities, quasi-municipal entities, ditch companies, utilities and the City are exempt from the bond provisions under 12.12.070(H)(6).

What does the bond cost?

The surety sets the annual premium from the $15,000 bond amount and an underwriting review of the contractor, which usually includes owner credit.

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

Other City of Canon City, CO Surety Bonds in Colorado

Single Job Right of Way

Blanket Right of Way in Other Colorado Locations

Arapahoe County, COTown of Frisco, CO

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