Surety Bond Encyclopedia

Public Right of Way (Annual) Bond - Northglenn, CO in Colorado

Brief Summary

If your crews pull more than a couple of right-of-way permits a year in Northglenn, one annual bond on the city's form replaces a separate bond for every job. It runs on the calendar year, renews by continuation certificate, and lets permits move through review without a new bond each time.

Northglenn requires a performance bond or letter of credit before it issues any right-of-way permit. Under Municipal Code 16-2-12, a contractor can post one annual bond covering all of its work for the year instead of a bond per project. The city's contractor checklist sets the annual bond at no less than $10,000, based on the estimated cost of the year's work, and it must be the original on the City of Northglenn form.

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How to Apply for a Public Right of Way (Annual) Bond:

Estimate the total cost of right-of-way work you expect in Northglenn this calendar year to set the bond amount, no less than $10,000.
Company legal name exactly as it appears on the Northglenn contractor registration.
Owner credit review and, for larger bond amounts, company financial statements.
Pay the premium and have the surety execute the City of Northglenn Annual Performance, Payment, Maintenance and Warranty Bond form.
Deliver the original signed bond to the Right-of-Way Division. Copies and faxes are not accepted.
Renew each year by continuation certificate before the December 31 expiration.

Detailed Information About the Colorado Public Right of Way (Annual) Bond:

Annual bond or job bond

Chapter 16, Article 2 of the Northglenn Municipal Code governs work in public rights-of-way. Section 16-2-12 requires a bond or letter of credit before a permit is issued. A project bond must equal the greater of the total construction cost or $5,000. An annual bond covers all proposed work for the coming year in place of project bonds, with the form and amount approved by the city. The Public Works contractor checklist sets the annual bond at a minimum of $10,000, sized to the estimated cost of the year's work.

The city can decide an annual bond is not enough, based on work already performed or the circumstances of a particular project, and require a project-specific bond on top of it. Plan for that on large jobs.

Subcontractors are not automatically covered

This catches a lot of crews. Section 16-2-12 lets the city require its own annual or project bond from any contractor who is not directly supervised by a contractor that already posted one, even if that contractor calls itself a subcontractor.

What the bond guarantees

The city's Annual Performance, Payment, Maintenance and Warranty Bond form covers four things. The principal performs every permit obligation and Chapter 16, Article 2. It indemnifies the city against injury and property damage claims tied to the work. It pays laborers, mechanics and suppliers. It warrants the work against defective workmanship and materials for two years after final acceptance, as required by Section 16-2-13.

The bond term runs to December 31 of the year written on it and can be renewed by continuation certificate. Liability is limited to the bond amount and is not cumulative across years. The bond stays in effect until the city releases it in writing, and a surety that cancels must give the city 30 days written notice.

Who does not post it

Special districts and government agencies may file a letter of responsibility instead. Franchisees follow their franchise agreements where those conflict with the code, and other public entities follow their agreements with the city.

The rest of the permit file

Northglenn also requires contractor registration each calendar year and a certificate of insurance naming the City of Northglenn and its officers, volunteers and employees as additional insured. Minimums are employer's liability of $100,000 each accident, $100,000 disease each employee and $500,000 disease policy limit, general liability of $1,000,000 per occurrence and aggregate, and auto liability of $1,000,000 per occurrence and aggregate. Starting work without a permit costs $500 plus twice the permit fee. Questions go to the Right-of-Way Division at 303-450-8984 or row@northglenn.org.

What it costs

You pay the surety a premium based on the bond amount you need for the year, your company's financials and the owner's credit. A larger annual program means a larger bond and a larger premium.

Eligibility and Requirements for a Colorado Public Right of Way (Annual) Bond:

City of Northglenn named as obligee on the city's own bond form.
Annual bond of at least $10,000, sized to the year's estimated work.
Surety that can be served with process in Colorado.
Two-year warranty on work after the city's final acceptance.
Current contractor registration and a certificate of insurance naming the city as additional insured.

Colorado Public Right of Way (Annual) Bond FAQs:

How much does the annual bond have to be?

The city's contractor checklist sets it at a minimum of $10,000, based on the estimated cost of your work for the year. The city approves the amount and can ask for more, or for a separate job bond, if the annual bond looks too thin for the work you are doing.

When does the annual bond expire?

On December 31 of the year written on the bond. It can be renewed by continuation certificate, but the surety's liability stays at the bond amount and does not stack from year to year.

My general contractor has an annual bond. Am I covered as a sub?

Only if you work under that contractor's direct supervision. Section 16-2-12 lets the city require a separate bond from any contractor not directly supervised by a bonded contractor, whatever it calls itself.

How long am I on the hook after a job is done?

Two years from the city's acceptance of the work. The bond form and Section 16-2-13 require you to repair defective workmanship and materials during that period at your own cost.

Do utilities and special districts need this bond?

Special districts and government agencies can file a letter of responsibility instead. Franchised utilities follow their franchise agreements where those conflict with the code. Their private contractors should check with the Right-of-Way Division.