Class D Public Way Contractor ($5,000) Bond - City of Westminster, CO in Colorado

Brief Summary

Read this before you buy anything for a Westminster Class D license. The City changed its rules in 2023. Its ROW permit page now says a letter of credit or a cash escrow check are the only acceptable forms of surety, bonds are not allowed, and the amount is $10,000. Confirm the current requirement with the Engineering Division before you post security.

Westminster, Colorado requires a Class D Public Way Contractor license, at $110 a year, before a contractor can pull a right-of-way excavation or construction permit. Under Municipal Code 5-5-7 the contractor must post $10,000 of surety payable to the City, and Section 5-5-1, as amended by Ordinance 4154 in 2022, limits that surety to a letter of credit or cash escrow. The City's ROW page states plainly that bonds are not allowed.

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How to Apply for a Class D Public Way Contractor ($5,000) Bond:

• Download the Contractor License Application from the City and complete it.
• Arrange a $10,000 letter of credit, using the City's template, or a cash escrow check payable to the City.
• Obtain insurance certificates meeting the Section 5-5-7 schedule, naming the City of Westminster as additional insured.
• Email the application, surety and insurance to the Engineering Division with the subject line Public Way Contractor License Application and your company name.
• Pay the $110 annual license fee and renew every 12 months.

Detailed Information About the Colorado Class D Public Way Contractor ($5,000) Bond:

What changed

Westminster amended its contractor licensing chapter with Ordinance 4154 on October 10, 2022. Section 5-5-1 of the Municipal Code now defines surety as the performance guarantee required of the contractor and says the City accepts a letter of credit or cash escrow without exception. Section 5-5-7 sets the Class D amount at $10,000. The Public Works ROW permit page repeats the rule for licenses issued as of 2023: a letter of credit or cash escrow check are the only acceptable forms, and bonds are not allowed. Any older reference to a $5,000 Class D bond reflects the rules before that change.

Who needs a Class D license

Only a Class D or Class E public way contractor can apply for a right-of-way permit in Westminster. Class D covers any approved work affecting public property, City or contracted utility systems, street rights-of-way and utility easements. Class E is limited to minimally invasive work such as traffic control, surveying, landscaping, driveway cuts, curb ramps and tree trimming, and carries a $500 surety. A Class D license supersedes Class E.

Exemptions

No additional surety is required when the work is done for the City under a contract that already requires a performance bond. Franchised entities are exempt unless their franchise or state or federal law says otherwise. Their independent contractors are not exempt unless the franchise provides for it.

Insurance

The City requires statutory workers' compensation, $1,000,000 employer's liability, $1,000,000 each occurrence for auto bodily injury and property damage, and general liability of $1,000,000 each occurrence and $2,000,000 aggregate, with the City of Westminster named as additional insured.

Eligibility and Requirements for a Colorado Class D Public Way Contractor ($5,000) Bond:

• Surety of $10,000 for Class D, or $500 for Class E, payable to the City of Westminster.
• Letter of credit or cash escrow only, per Municipal Code 5-5-1 and the City ROW page.
• Workers' compensation and $1,000,000 employer's liability.
• General liability of $1,000,000 each occurrence and $2,000,000 aggregate, including subcontractors.
• Good standing with the City. Two unauthorized work fees suspend a Class D license for one year.

Colorado Class D Public Way Contractor ($5,000) Bond FAQs:

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