Surety Bond Encyclopedia

Contractors License ($5,000) Bond - City of Pueblo, CO in Colorado

Brief Summary

In Pueblo, a contractor license alone will not get you an excavation or curb and gutter permit. Public Works only issues those permits to licensed contractors who already have a $5,000 bond and insurance on file. A surety bond keeps you eligible all year for a single premium, without leaving $5,000 in cash with the City.

The City of Pueblo requires a $5,000 bond, posted with the Director of Public Works, from any contractor who applies for a permit to excavate a street, alley or other public place, or to build, remove or repair sidewalk, driveway, curb or gutter in the public right-of-way. The requirement is set by Pueblo Code of Ordinances Sections 12-6-10 and 12-3-31(f).

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How to Apply for a Contractors License ($5,000) Bond:

  • Hold a current contractor license under Chapter 1, Title IV of the Pueblo Code.
  • Register as a contractor in the City's online permit portal.
  • Apply for the $5,000 bond with the City of Pueblo as obligee.
  • File the bond and a general liability insurance certificate with Public Works.
  • Pull each excavation or concrete permit and pay the posted permit and impact fees.

Detailed Information About the Colorado Contractors License ($5,000) Bond:

Who has to post this bond

Pueblo Public Works issues excavation permits and concrete permits for work in the City right-of-way. Its excavation page says only licensed contractors with current bonding and insurance information on file with the department may pull an excavation permit, and only a licensed contractor may pull a permit to install or replace curb and gutter. A homeowner may still pull a sidewalk permit for the sidewalk next to their own property.

The amount is fixed in the City Code. Section 12-6-10 requires anyone applying to dig in, open or excavate a street, alley, sidewalk or other public place to post a $5,000 bond with the Director of Public Works. Section 12-3-31(f) sets the same $5,000 penal sum for contractors who construct, remove, repair or disturb sidewalk, driveway, curb or gutter in the right-of-way. The Director approves the bond as to sufficiency and the City Attorney approves it as to form.

What the bond guarantees

The bond guarantees that the contractor follows City ordinances and Public Works specifications. Excavation work carries a two year responsibility for settlement after backfill, and concrete work carries a two year warranty after acceptance. If a contractor ignores a repair notice, the City can do the work and recover the cost from the contractor's surety. A permit will not be issued while a forfeited bond has not been reinstated or replaced.

Who is exempt

The Board of Water Works, School District No. 60, the Colorado Department of Transportation, utility companies and others authorized by City Council are exempt from the excavation bond and insurance rules under Section 12-6-3(2).

Eligibility and Requirements for a Colorado Contractors License ($5,000) Bond:

  • Bond amount of $5,000 under Pueblo Code 12-6-10 and 12-3-31(f).
  • Bond approved by the Director of Public Works for sufficiency and by the City Attorney for form.
  • General liability insurance for excavation work at minimum limits of $100,000, $300,000 and $25,000 under Section 12-6-11.
  • Thirty days notice to the City before any change in or cancellation of the insurance.
  • Two year warranty on excavation backfill and on concrete work after acceptance.

Colorado Contractors License ($5,000) Bond FAQs:

I already have a Pueblo contractor license. Do I still need this bond?

Yes, if you pull excavation or curb and gutter permits. Public Works only issues those permits to licensed contractors who also have bonding and insurance on file with the department.

Is the amount ever more than $5,000?

No. Sections 12-6-10 and 12-3-31(f) of the Pueblo Code both set the bond at $5,000.

Can a homeowner do the work without a bond?

A homeowner may pull a permit to install or replace the sidewalk next to their own property. Curb and gutter work and excavation in the right-of-way need a licensed contractor.

What does the premium cost?

The surety prices the bond after reviewing your credit and business history. You see the quote before you buy.

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