Right of Way Performance and Maintenance Bond - City of Englewood, CO in Colorado

Brief Summary

Englewood will not issue a right-of-way permit until this bond or another approved form of security is on file. The amount is tied to your job, not a flat figure, so getting it right up front keeps your permit from stalling at the counter.

Under Englewood Municipal Code 11-7-9, anyone pulling a permit for work in the City of Englewood right-of-way must file a bond or letter of credit in favor of the city for the total cost of construction, including labor and materials, or $5,000, whichever is greater. The bond must stay in force for at least two years after the city accepts the work, which matches the two year warranty in Section 11-7-10.

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How to Apply for a Right of Way Performance and Maintenance Bond:

• Hold a City of Englewood contractor license.
• Prepare the itemized construction and restoration cost estimate for the permit application.
• Set the bond at the total construction cost or $5,000, whichever is greater.
• Buy the bond naming the City of Englewood as obligee, on a form the city approves.
• File the bond and the insurance certificate before the permit is issued.
• Keep the bond in force for at least two years after the city accepts the work.

Detailed Information About the Colorado Right of Way Performance and Maintenance Bond:

How much the bond is

There is no single amount. Section 11-7-9 sets the bond at the total cost of construction, labor and materials included, or $5,000, whichever is greater. A $3,000 curb repair still needs a $5,000 bond. A $60,000 utility trench needs $60,000. The permit application asks for an itemized estimate of restoration cost to set the bond, and the city can raise that estimate if it looks low compared with recent bids the city or CDOT has received for similar work.

Who has to post it

Section 11-7-4 requires a city contractor license for any work in the right-of-way and a permit for each job, and permits go only to licensed and bonded contractors or to a homeowner at their own primary residence. Before any permit is issued, the applicant files this bond or a letter of credit.

There are a few exceptions. Public utilities, franchised entities, and metropolitan, water and sanitation districts working in the city may file a letter of responsibility instead. The city may also waive the bond, or accept one without a surety, if it finds the applicant has the financial stability and Colorado assets to cover claims. Emergency repairs may begin without a permit, but a permit must be applied for by the second working day if right-of-way improvements are disturbed.

What the bond guarantees

The bond is conditioned on full compliance with city ordinances, rules and regulations, and on payment of judgments and costs for damages from negligent or wrongful acts in the permitted work. The city can sue on the bond for itself or on behalf of anyone harmed. The city must approve the bond form and the surety before the permit is issued.

The maintenance part

By accepting the permit, the contractor warrants the work for two years from the city's initial acceptance. That covers defective workmanship, settling of fills or excavations, unapproved deviations from plans, failure to barricade and failure to clean up. Emergency repairs must be made within 24 hours and other repairs within 30 calendar days of notice. If the contractor does not fix the problem, the city does the work and bills the actual cost plus a 50 percent penalty. The bond must remain in force at least two years after completion and acceptance. About 30 days before the warranty ends, the city inspects the work and releases the bond if it passes.

Insurance

Section 11-7-8 also requires commercial general liability with XCU coverage of at least $2,000,000 per occurrence and $4,000,000 aggregate, plus workers compensation.

Premium

The premium is a percentage of the bond amount, so it scales with the size of the job. The surety sets the rate after reviewing the contractor's credit and history.

Eligibility and Requirements for a Colorado Right of Way Performance and Maintenance Bond:

• Obligee: City of Englewood.
• Amount: total cost of construction including labor and materials, minimum $5,000, per EMC 11-7-9.
• Surety on whom service of process may be had in Colorado.
• Two year warranty after initial acceptance under EMC 11-7-10.
• General liability with XCU coverage of $2,000,000 per occurrence and $4,000,000 aggregate, plus workers compensation.

Colorado Right of Way Performance and Maintenance Bond FAQs:

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