Right of Way Permit ($10,000) Bond - City of Wheat Ridge, CO in Colorado

Brief Summary

Wheat Ridge will not issue a class A excavation or class D right-of-way license until a bond is on file, and the city lets you swap the cash deposit for a performance and warranty bond from an insurance company. That keeps $10,000 of your cash out of the city's hands for the two years it holds the bond after the work is done.

Contractors licensed to dig, pave or otherwise work in Wheat Ridge streets and rights-of-way must post a license and permit bond with the city before the license is issued. Section 21-21(e) of the Wheat Ridge Code of Laws calls for a cash bond in an amount the public works director sets each year, and allows a surety performance and warranty bond acceptable to the director in its place. This listing is written at $10,000. Confirm the current amount and form with Wheat Ridge Public Works before the bond is issued.

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How to Apply for a Right of Way Permit ($10,000) Bond:

• Decide which license you need, class A excavation or class D right-of-way occupation, and apply with Wheat Ridge Public Works.
• Ask Public Works for the current license bond amount, since the director sets it annually, and for any required bond form.
• Provide the legal business name exactly as it appears on the license application.
• Complete the bond application and review the premium quote.
• File the executed bond with the city along with the certificate of insurance and the license fee before the license is issued.
• If a permit covers work costing more than $10,000, arrange a separate bond for the estimated cost of that work.

Detailed Information About the Colorado Right of Way Permit ($10,000) Bond:

Two different bonds in the same chapter

Wheat Ridge regulates work in public ways under Chapter 21, Article II of its Code of Laws, and the chapter contains two separate bond rules. Contractors mix them up all the time.

The first is the license and permit bond in section 21-21(e). Anyone holding a class A excavation license or a class D right-of-way occupation license posts it before the license is issued. The code sets it as a cash bond in an amount the director of public works sets annually, and it allows an insurance company performance and warranty bond acceptable to the director to be substituted for the cash. This page covers that bond at the $10,000 amount shown in the listing.

The second is a project bond under section 21-20(b). When the cost of the work under a permit exceeds $10,000, a bond in the amount of the estimated cost of that work must be filed with the director before the permit issues, unless a franchise agreement with the city says otherwise. A large job can therefore need its own bond on top of the license bond.

Who needs a license

Class A covers street and roadway construction such as excavation, grading, paving, curb and gutter, sidewalks, boring and trenching, and installing water, sewer, storm, fiber, gas or electric lines. Class D covers occupying the public way for traffic control, street or pedestrian lighting, tree trimming, staging or storing materials and containers, and installing permanent infrastructure.

What the bond covers

The city holds the bond to make sure permitted work gets finished and to warrant the work for two years. Under section 21-30 the permittee guarantees the work for two years after the city's probationary acceptance, covering defective workmanship, settling of fills or excavations, unapproved changes from the plans, failure to barricade and failure to clean up. Emergency repairs are due within 24 hours of notice and other repairs within 30 calendar days. About 30 days before the warranty ends the city inspects the work and, if it passes, releases the bond less any amounts needed to finish incomplete work.

Exemptions

A maintenance permit under section 21-14 does not require a performance bond, letter of credit or warranty. The director may also waive financial security requirements for a governmental entity or a self-insured entity, and may waive the final inspection and performance bond for work that does not materially disturb the right-of-way.

What it costs

The premium is a fraction of the bond amount and depends mainly on the owner's personal credit and the contractor's financial history. You pay it each term the bond stays in force.

Eligibility and Requirements for a Colorado Right of Way Permit ($10,000) Bond:

• City of Wheat Ridge named as obligee.
• A performance and warranty bond acceptable to the director of public works, in place of the cash bond.
• Commercial general liability coverage at limits set by the director, including XCU coverage.
• Automobile liability coverage with a combined single limit of at least $1,000,000.
• Workers compensation insurance as required by Colorado law.
• Coverage that stays in force for the two year warranty period after the city accepts the work.

Colorado Right of Way Permit ($10,000) Bond FAQs:

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