Surety Bond Encyclopedia

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

Brief Summary

Centennial will not issue a right-of-way permit for construction or maintenance work until a $20,000 bond is on file and kept active for the life of the permit. Posting a surety bond meets that requirement for an annual premium, so your cash stays in the business.

Centennial's Public Works Right-of-Way Regulations, adopted by Municipal Code 11-6-10, require anyone pulling a permit for construction or maintenance work in city right-of-way to post and maintain a minimum $20,000 bond for the term of the permit. Governmental agencies, utilities, communications companies, water and sanitation districts and mutual companies may use a city approved performance guarantee instead. The City of Centennial is the obligee.

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

  • Get or renew a Centennial contractor license at the Civic Center counter.
  • Request a $20,000 bond naming the City of Centennial as obligee.
  • Ask Public Works whether a city bond form is required and confirm the current filing steps.
  • File the bond with the right-of-way permit application.
  • Keep the bond in force for the full term of every permit you hold.
  • Schedule the warranty inspection before the two year warranty ends.

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

Who posts the $20,000 bond

Section 3.8.2 of the Centennial Public Works Department Right-of-Way Regulations, dated February 2018 and adopted by reference in Municipal Code 11-6-10, says every entity seeking a permit for Construction Activities or Maintenance Activities must post and maintain a bond of at least $20,000 during the term of any permit. In practice that means contractors, subcontractors and property owners doing their own work in the street, sidewalk or other city right-of-way.

The figure is a minimum, not a cap. If the city asks for more on a particular job, the bond has to match.

Who can use something else

The regulations call out Excepted Entities: governmental agencies, public utility and communications companies, water and sanitation districts and mutual companies. They may post the bond or a performance guarantee in a city approved form that names the City as beneficiary or secured party. The approved form is the Letter of Responsibility and Agreement to Perform, available at the Right-of-Way Permit and Contractor License counter at the Civic Center, 13133 E. Arapahoe Road.

The license comes first

Section 3.8.1 requires any owner, contractor or subcontractor working under a right-of-way permit to be licensed to perform work in Centennial, except for storage activities. The bond does not replace the license. Both are handled at the same Civic Center counter, (303) 325-8000.

What the bond backs

Work done under a Centennial right-of-way permit must follow the city's Right-of-Way Regulations and is warranted for two years from acceptance. During that period the city can call on the permit holder to fix defective work, and corrected work carries its own two year warranty. The bond gives the city a source of payment if the permit holder does not comply. Confirm the current bond form and filing steps with Centennial Public Works before the bond is issued.

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

  • Minimum bond of $20,000 maintained during the term of any permit.
  • Centennial contractor license for owners, contractors and subcontractors working under the permit.
  • Work built to the Right-of-Way Regulations and the Roadway Design and Construction Standards.
  • Two year warranty on accepted work.
  • Utilities and government bodies may substitute the Letter of Responsibility and Agreement to Perform.

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

Is $20,000 the exact amount?

It is the minimum. Section 3.8.2 of the Right-of-Way Regulations requires at least a $20,000 bond, maintained for the term of any permit.

Does a utility company need this bond?

Not necessarily. Governmental agencies, public utility and communications companies, water and sanitation districts and mutual companies can post the bond or a city approved performance guarantee called the Letter of Responsibility and Agreement to Perform.

Do I still need a contractor license?

Yes. Except for storage activities, anyone working as an owner, contractor or subcontractor under a right-of-way permit must be licensed to work in Centennial.

What does the bond cost?

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

Official and Additional Resources for the Colorado Right of Way Permit ($20,000) Bond:

Right of Way Permit ($20,000) in Other Colorado Locations

City of Aurora, CO

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