Right of Way Permit Bond - City of Greeley, CO in Colorado

Brief Summary

One $10,000 bond can cover every right of way permit you pull in Greeley for the life of your contractor license. Without it, the City asks for cash, a lender guarantee, a letter of credit or a certificate of deposit permit by permit. The bond keeps that money in your business.

Greeley will not issue a right of way permit unless the contractor holds a valid general utility/street contractor license and has posted financial security. Under Greeley Municipal Code 18-67, a $10,000 performance bond that runs with the license can take the place of permit by permit security, and it must warrant the work for two years after each permit is issued.

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How to Apply for a Right of Way Permit Bond:

• Apply for or renew the Greeley general utility/street contractor license.
• Decide between the $10,000 performance bond and security posted for each permit.
• Provide the contractor's exact legal name as it appears on the license.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the executed $10,000 bond naming the City of Greeley as obligee.
• File the bond and the certificate of insurance with the City before permits are issued.

Detailed Information About the Colorado Right of Way Permit Bond:

Two ways to post security

Greeley Municipal Code 18-64 makes a valid general utility/street contractor license and financial security conditions for any permit to work in the public way. Section 18-67 gives contractors two options.

• Security for each permit in an amount and form acceptable to the director of finance, posted as a cash deposit, a lender guarantee backed by cash, an irrevocable letter of credit from a state financial institution, or a certificate of deposit cosigned by the City.
• A $10,000 performance bond that coincides with the contractor license and covers the permits issued under it.

For contractors who pull more than an occasional permit, the bond is usually the simpler route because it does not tie up cash on every job.

The two year warranty

Every form of security, the bond included, must warrant the work done under the license for two years after each permit is issued. Final acceptance cannot extend more than two years past the permit's initial filing date. The contractor also stays responsible for later settling at the excavation site under section 18-65, and the city engineer may ask for more security before granting a permit extension.

Insurance is separate

Section 18-71 also requires liability coverage before the license issues, at not less than $150,000 for injury to one person, $400,000 per accident and $400,000 for property damage. Public utility companies may be excused from the certificate of insurance if they show they are insured or self insured. Confirm the current bond form and filing steps with the City of Greeley before the bond is issued.

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

• Valid Greeley general utility/street contractor license.
• $10,000 performance bond running with the license, under Municipal Code 18-67.
• Two year warranty on work under each permit.
• Liability coverage of at least $150,000 per person, $400,000 per accident and $400,000 for property damage.
• City of Greeley named as obligee.

Colorado Right of Way Permit Bond FAQs:

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