Right of Way Permit ($5,000) Bond - Town of Palisade, CO in Colorado

Brief Summary

Palisade gives contractors two ways to cover this requirement: a $5,000 bond on file with the Town or $5,000 in cash. A bond keeps that cash in your business, and once it is on file it is ready for the next street cut too.

Contractors working in Town of Palisade rights of way must have a $5,000 bond on file with the Town, or put up a $5,000 cash deposit, before a Right-of-Way Permit is issued. The Town of Palisade is the obligee. The permit fee is $25, and contractors also need an active Palisade business license and general liability insurance of at least $25,000.

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How to Apply for a Right of Way Permit ($5,000) Bond:

• Get or renew your Town of Palisade business license.
• Order the $5,000 bond naming the Town of Palisade as obligee, or plan on a $5,000 cash deposit instead.
• Get a certificate of general liability insurance of at least $25,000.
• Call 811 at least 48 hours before cutting the street.
• Submit the Right-of-Way Permit form with the sketch of proposed work, traffic control plan, insurance and bond, and pay the $25 fee.
• Schedule required inspections with Public Works at least 24 hours ahead and get final sign off.

Detailed Information About the Colorado Right of Way Permit ($5,000) Bond:

The $5,000 requirement

Item 3 of the Town of Palisade Right-of-Way Permit Conditions and Requirements says contractors must have proof of insurance and an active insurance bond in the amount of $5,000 on file with the Town, or put up a cash deposit of $5,000, before the permit is issued. The amount is flat. It does not change with the size of the job. The Town of Palisade is the obligee, and Public Works reviews and approves the permit.

The Town's permit sheet tracks whether the bond was received, and it warns that failing to get final inspection sign offs will result in notice to the contractor's bonding company. That is the bond doing its job. It backs your promise to finish the work, pass inspection and fix defects.

Who needs a permit

The permit covers anyone excavating or working within a public right of way inside Palisade town limits in Mesa County. The Town's Public Works page asks homeowners upgrading utility lines who need to break the ground surface to file the permit before they begin. The bond requirement in item 3 is written for contractors.

Other conditions that catch people

The permit fee is $25, paid before the permit issues. Contractors must hold an active Town business license and carry general liability insurance of not less than $25,000. Traffic control plans are required 24 hours in advance. All work must follow the latest City of Grand Junction Design Criteria and Construction Specifications Manual.

The contractor guarantees all work for one year from the date of final acceptance by the Town. If compaction tests are not provided before paving, the warranty period extends to two years. Public Works needs 24 hours notice before work starts and for each inspection at (970) 464-5602.

What the bond costs

You pay a premium, not the $5,000. The surety sets the premium from the bond amount and your credit and business history. Confirm the current form and filing steps with Palisade Public Works before the bond is issued.

Eligibility and Requirements for a Colorado Right of Way Permit ($5,000) Bond:

• Bond amount of $5,000, or a $5,000 cash deposit in its place.
• Town of Palisade named as obligee.
• Active Town of Palisade business license.
• General liability insurance of not less than $25,000.
• One-year warranty on all work from final acceptance, two years if compaction tests are not provided before paving.

Colorado Right of Way Permit ($5,000) Bond FAQs:

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