Surety Bond Encyclopedia

Excavation Contractor ($50,000) Bond - City of Denver, CO in Colorado

Brief Summary

Denver will not issue a right-of-way Excavator license until it holds an original $50,000 bond on the city's own form. You pay an annual premium instead of tying up $50,000 in cash, and the bond goes into the same packet as your application, insurance certificate and $50 license fee.

Any contractor digging in a Denver street, alley or other public property needs a ROW Excavator license from Community Planning and Development, Contractor Licensing. The license requires a $50,000 bond to the City and County of Denver under Denver Revised Municipal Code Section 49-200, filed in original form on the city's bond form. The license fee is $50 and the license renews every year.

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How to Apply for a Excavation Contractor ($50,000) Bond:

Confirm your work is excavation in a public street, alley or other Denver public property.
Document five years of verifiable excavation experience.
Complete the Right-of-Way License Application and mark ROW Excavator.
Buy the $50,000 bond on Denver's Section 49-200 Excavation Contractor form, signed and sealed, with the surety power of attorney attached.
Get a liability insurance certificate naming the City and County of Denver as additional insured, with CU and X coverage.
Gather Secretary of State documents and the signer's photo ID.
Submit through Denver e-permits, by mail or in person, and pay the $50 license fee.

Detailed Information About the Colorado Excavation Contractor ($50,000) Bond:

Who needs it

Denver issues a separate set of right-of-way (ROW) licenses for work in public streets, alleys and other city property. The ROW Excavator license covers excavation in any public street, alley or other public property of the city. A building license from the city does not cover this work. If your crew is opening the ground in the right-of-way, you need this license and the bond that goes with it.

Applicants must show five years of verifiable experience in the trade. There is no exam.

What the bond says

The city's form is titled License Bond Pursuant to Section 49-200 of the Revised Municipal Code (Excavation Contractor). It is written for a penal sum of $50,000 with the City and County of Denver as obligee. The contractor promises to follow every ordinance on excavating in the right-of-way and the Department of Public Works rules, to pay all claims incurred in the work, to hold the city harmless for damage caused by its work, and to repay the city for any cost of maintenance, repairs or replacements during the ordinance guarantee period.

The surety can cancel the bond with 30 days written notice by certified mail to the Manager of Public Works.

Filing details people miss

Denver only accepts the original bond, on the city's form, with the surety seal and a power of attorney attached. Copies are rejected. The bond has to be in the exact individual or company name on the application, and for a corporation or LLC it must be signed by an owner, officer, member or partner.

The insurance certificate has extra conditions for excavators. General liability must include collapse and underground (CU) hazard, explosion (X) coverage and contractual liability, along with the standard $1,000,000 per occurrence and $2,000,000 aggregate limits. Denver must be named as additional insured.

Fee and renewal

The ROW Excavator license fee is $50. ROW licenses renew annually, one year from the month of issue, and the city does not mail renewal notices. Keep the bond in force for as long as you hold the license.

Premium

The premium is a fraction of the $50,000 bond amount, set by the surety after reviewing the owner's credit and business history.

Eligibility and Requirements for a Colorado Excavation Contractor ($50,000) Bond:

Obligee: City and County of Denver.
Bond amount: $50,000 on the city's own form, original only.
Surety authorized to transact business in Colorado.
Bond name must match the license applicant exactly.
Commercial general liability of $1,000,000 per occurrence and $2,000,000 aggregate, plus $1,000,000 auto liability.
Annual license renewal with proof of current liability insurance.

Colorado Excavation Contractor ($50,000) Bond FAQs:

Can I email a copy of the bond to Denver?

No. The ROW application says all bonds must be submitted in original form on the City and County of Denver bond form, stamped with the surety seal and with the power of attorney attached. Copies are not accepted.

How often does the license renew?

Every year. Denver ROW licenses renew one year from the month of issue, and the city does not send reminders. Online renewal opens 30 days before expiration.

Is there a test?

No test is required for the ROW Excavator license. You do need five years of verifiable experience in the trade.

What insurance do excavators need besides the bond?

General liability of at least $1,000,000 per occurrence and $2,000,000 aggregate, with collapse and underground hazard, explosion coverage and contractual liability. Auto liability of $1,000,000 combined single limit is also required. Denver must be an additional insured on both.

What does the bond cost?

You pay a yearly premium that is a percentage of the $50,000 amount. The surety sets the rate based mainly on the owner's credit and business history.