Colorado Contractor License: The Complete Guide (2021)
Thinking about launching a construction business in Colorado? Your first step is to obtain a Colorado contractor license, which gives you the right to operate.
There are no statewide requirements for the licensing of general contractors. You have to obtain a Colorado general contractor license from your municipal authorities, such as in Denver and Boulder. Electricians and plumbers, on the other hand, have to get a state license from the Department of Regulatory Agencies.
In the guide below, you can find out the essentials about the licensing process for all types of contractors across the state, and specific requirements about getting a Denver contractor license.
The Colorado Contractor License Requirements
For all types of licenses, you have to undergo a business licensing procedure in order to set up your operations in the state.
Business Entity Registration
You have to register your business with the Colorado Secretary of State. You can select between a few different structures, which are sole proprietorship, general partnership, corporation and LCC.
In case you will be doing business under a trade name, you have to obtain it from the Secretary of State as well.
You have to obtain a Taxpayer Identification Number and Certification from the Colorado Department of Revenue.
Complete the Colorado Contractor License Application
If you are applying for a Denver contractor license, you have to fulfill a list of requirements that depend on the exact license type that you select. The options are the following:
- Construction (General Contractor Class A, Building Contractor Class B and Residential Contractor Class C)
- Demolition / Moving
- Electrical (includes Access Control and Electrical Signal)
- Fire Protection
- Specialty Class D
The licensing authority in the city is the Community Planning and Development Department.
You first need to apply for a supervisor certificate, or alternatively, you should already hold a Colorado electrical license from the Department of Regulatory Agencies. In order to obtain a supervisor certificate in Denver, you have to provide proof of the following:
- Appropriate and sufficient education and experience
- Previous licenses and certificates
- Affidavit of Lawful Presence
- Successful completion of a test
Once you have obtained a supervisor certificate or state-level electrical license, you can apply for a contractor license via the application form online. The Department will review your application within 10 days after you have submitted it.
License and Registration Fees
The licensing fee for the Denver contractor license is $250 for three years. The supervisor certificate fee is $60.
Provide a Surety Bond and Insurance
Depending on the Colorado contractor license that you want to obtain, you may have to get a surety bond and insurance in addition to meeting the requirements listed above.
Worker’s compensation insurance
If you will be hiring employees, you will need to get worker’s compensation insurance. You can find information about it from the Department of Labor and Employment.
For some types of contractor licenses in Colorado, you have to obtain a surety bond. This is a protection mechanism that safeguards the interests of your customers.
The amounts of the required Colorado contractor license bond vary, as they are set by the city licensing authorities. Here are some of the bond amounts in the state:
- Denver cement sidewalk contractor bond – $10,000
- Denver structural contractor bond – $25,000
- Denver sewer contractor and general contractor bond – $50,000
In order to get bonded, you have to pay a small fraction of the amount. It is called the bond premium. If your finances are in good shape, you can expect rates between 0.75% and 5%.
You can see the exact cost of your contractor license bond by filling out our short application form below!
How to Verify Your Colorado Contractor License
You can check your license via the search option of the Department of Regulatory Agencies. You can conduct a Colorado contractor license search by license type and company data.
License Renewal and Expiration
All Colorado contractor licenses have an expiration date, which varies depending on the type of license and the issuing authority. You need to renew your license before that date if you want to continue your operations without a break. For Denver contractors, the licensing period runs for three years from the date of issuance.
Have further questions about getting your Colorado contractor license and bonding? Don’t hesitate to contact us at 877.514.5146.
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