Surety Bond Encyclopedia

Right of Way ($20,000) Bond - City of Fort Collins, CO in Colorado

Brief Summary

Check the amount before you buy. Since Ordinance 001 of 2025, Fort Collins City Code 15-363 sets the right of way contractor bond at $100,000, or $250,000 for contractors boring for utilities, unless a Supplemental Site License sets another figure. Getting the right number on an original bond the first time keeps your license and every permit tied to it moving.

Anyone who builds, installs, alters or repairs sidewalks, curbs, gutters, driveways, curb cuts, streets, alleys or other improvements in Fort Collins public right of way needs a right of way contractor license, and every license application must include a license and permit bond. City Code 15-363 sets the amount at $100,000, or $250,000 for boring utilities, written by a surety rated A- or better and kept continuous.

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

  • Confirm with City Engineering whether your work calls for the $100,000 bond, the $250,000 boring bond, or an amount set in a Supplemental Site License.
  • Provide the contractor's exact legal name as it appears on the license application.
  • Complete the bond application and review the quoted premium.
  • Pay the premium and receive the original bond, or an electronically sealed file from the surety.
  • Submit the bond with the license application, insurance certificate and fees to the City Engineer.
  • Keep the bond in force for as long as you hold the license.

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

What the current code requires

Fort Collins City Code 15-363, as amended by Ordinance 001 of 2025, requires every right of way contractor license application to include a license and permit bond. The amount depends on the work.

  • Standard right of way work: $100,000, or another amount set in a Supplemental Site License under Code 23-177 for small cell facilities.
  • Boring for utilities in the public right of way: $250,000.

The bond must come from a surety rated A- or better and be delivered as an original or as an electronic file sealed by the surety. Confirm with City Engineering which amount applies to your license before the bond is issued.

The bond is continuous

The bond has no annual end date and needs at least 60 days notice before cancellation. If it is canceled, the license and related permits are revoked at once and work stops. The canceled bond still has to cover the warranty period on work already completed.

What it protects

Code 15-367 requires licensed contractors to guarantee their work for two years, or longer if the City standards for that work say so. That covers defects in materials or workmanship and settling of trenches, fills and excavations. If the contractor will not make repairs the City Engineer orders, the City can make them and recover the cost from the bond. Excavation permits under Code 23-19 rely on the same bond and insurance.

Who is exempt

Code 15-369 exempts City crews, parties under contract with the City, utility companies using their own crews (but not their contractors), and residential owners working in the right of way next to their own home.

Other license conditions

Applicants also need commercial general liability insurance of $1,000,000 combined single limit naming the City as additional insured, with deductibles no higher than $1,000. Asphalt, utility, nonstructural concrete and structural concrete work each need a separate endorsement on the license.

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

  • Surety company rated A- or better.
  • Bond amount of $100,000, or $250,000 for boring utilities, under City Code 15-363.
  • Continuous bond with at least 60 days cancellation notice.
  • Commercial general liability insurance of $1,000,000 naming the City of Fort Collins as additional insured.
  • Endorsements for asphalt, utility, nonstructural concrete or structural concrete work where that work is performed.
  • Two year guarantee on completed right of way work.

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

How much is the Fort Collins right of way bond?

City Code 15-363 sets it at $100,000 for standard right of way work and $250,000 for contractors boring for utilities. A Supplemental Site License for small cell facilities can set a different amount. Confirm the figure with City Engineering before ordering.

Who does not need the license and bond?

City crews, contractors working under a contract with the City, utility companies using their own crews, and residential owners working in the right of way next to their own property.

What happens if my bond is canceled?

Your license and related permits are revoked immediately and work must stop. The bond still has to cover the warranty period on work you already finished.

What does the premium depend on?

The surety looks at the bond amount and at the contractor's credit, experience and financial history. The boring bond costs more than the standard bond because the amount is higher.

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

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