Right of Way Bond - Rifle, CO in Colorado

Brief Summary

Rifle sizes this bond to your job, not to a flat number. It equals the full cost of the work in the right-of-way or $2,500, whichever is greater, and it has to stay in place for two years after the final inspection. Getting the amount right from your cost estimate before you apply keeps the permit from stalling in review.

Rifle Municipal Code 11-4-80 requires a maintenance bond for every right-of-way use and excavation permit, in an amount equal to the total cost of construction including labor and materials, or $2,500, whichever is greater. The City of Rifle is the obligee, the bond goes on the City's standard bond form, and it cannot be cancelled for two full years after the final inspection shows the work 100% complete.

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How to Apply for a Right of Way Bond:

• Calculate the total cost of the work, including labor and materials, using the City's cost estimate worksheet.
• Set the bond amount at that total or $2,500, whichever is greater.
• Hold a current City of Rifle contractor's license as an excavation or drain-laying contractor.
• Have the surety issue the bond on the City of Rifle standard maintenance bond form, signed and notarized.
• Upload the bond, site plan, traffic control plan and certificate of insurance through the City permit portal.
• Pay the $250 basic permit fee or $500 for horizontal boring before the permit is issued.

Detailed Information About the Colorado Right of Way Bond:

How much the bond is

This is the part most applicants get wrong. The bond is not a fixed $2,500. Section 11-4-80(a) of the Rifle Municipal Code sets it at the total cost of construction, including labor and materials, or $2,500, whichever is greater. A $1,200 curb repair carries a $2,500 bond. A $40,000 utility trench carries a $40,000 bond. The City's permit conditions include a cost estimate worksheet for this purpose, and excavation permit applications must show the valuation of work with quantities and unit prices. Under 11-4-80(d) the City may raise, lower or waive the security for reasonable cause.

What it guarantees

This is a maintenance bond. It guarantees that the materials, equipment and workmanship used in the permitted work will be free from defects and in good order to the City's satisfaction for two years from the date of the final inspection showing 100% satisfactory completion. The bond is noncancelable for those two full years. The City's bond form also requires the contractor to hold the City harmless from losses and damage caused by the work. If the work fails during the two years and the permittee does not fix it in the time the City sets, the City uses the bond to make the repair.

Who needs a permit

Section 11-4-40 requires a permit for any excavation, construction or fill in a public street, right-of-way or other public place, and the City's permit conditions extend that to curb, gutter and sidewalk work, potholing, dumpsters, construction parking and lane or sidewalk closures. A separate permit is required for each location. Under 11-4-50, only contractors licensed by the City as excavation or drain-laying contractors may apply, and the permit conditions require a current City of Rifle General Contractor's License for all contractors and subcontractors. Public utilities, the City and their subcontractors are outside the 11-4-50 licensing rule.

Fees and filing

The City's permit conditions list a $250 permit fee for basic use and excavation and $500 for horizontal boring. Work started without a permit costs twice the usual fee under 11-4-40(e). Applications go through the City's online permit portal, and the City asks for at least two business days to review. Excavation permit applications must include an original signed and notarized bond on the City of Rifle standard form. Section 11-4-80(b) lets an applicant ask to substitute a letter of credit or cash, subject to City approval.

Eligibility and Requirements for a Colorado Right of Way Bond:

• City of Rifle named as obligee.
• Surety qualified to transact business in Colorado.
• Bond equal to total construction cost or $2,500, whichever is greater, under Rifle Municipal Code 11-4-80.
• Two year noncancelable term running from the final inspection showing 100% completion.
• Proof of liability insurance in a form approved by the City, with a carrier licensed in Colorado.

Colorado Right of Way Bond FAQs:

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