Colorado Contractor License Bond

Get a Free Bond Quote!

Apply Online Get a Free Quote Buy Your Bond
Insurance brokers representing clients can apply here.
Powered by
  • Contractor license bond experts
  • Excellent bonding rates in Colorado
  • Secure online application
  • Bad credit program

Watch our video

How Do I Get Bonded?

Colorado Contractor License Bonds Explained

Many types of contractors in Colorado have to obtain state or city licensing in order to launch their operations legally. In the cities of Denver and Arvada, certain types of contractors also have to provide a contractor license bond as part of becoming fully licensed.

The bonding requirement serves as a safety mechanism that protects your customers against potential illegal activities you may engage in as a contractor. The bond guarantees your legal compliance.

The contractor license bond that you obtain works as a contract between three entities. Your contracting company is the principal, the relevant city authority is the obligee that requires it, and the surety is the third party that provides it.

Questions about Contractor License Bonds in Colorado

When is this bond required?

In Colorado, contractors do not have to meet a statewide requirement for obtaining a contractor license bond. The cities of Denver and Arvada impose a bonding criterion for certain types of contractor licenses. In Denver, cement sidewalk, structural, sewer, and general contractors have to get bonded. In Arvada, municipal (right of way) contractors have to get a $20,000 surety bond. The purpose of the bonding is to guarantee that the contractor will adhere to all applicable regulations and legislation.

What are the bond costs?

The surety bond amount that you have to provide as a Colorado contractor license varies on your specialty and on your location, as it is set by your city's authorities. The bond premium that you have to pay is a percentage of the required amount, which is based on the strength of your personal and business finances.

The surety that you apply with determines your surety bond cost by considering a range of factors, including your personal credit score, business finances, and liquidity and assets that you may have. It assesses them to measure the level of the bonding risk. You are more likely to get a lower bond price if your finances are in good shape.

Colorado Contractor License Bond Cost Based on Credit Score
Surety bond name Bond amount Credit Score
Above 700 Between 650-699 Between 600-649 Below 599
Denver cement sidewalk contractor bond $10,000 $100-$150 $100-$250 $250-$500 $500-$1,000
Denver structural contractor bond $25,000 $187.5-$375 $250-$625 $625-$1,250 $1,250-$2,500
Denver sewer and general contractor bond $50,000 $375-$750 $500-$1,250 $1,250-$2,500 $2,500-$5,000
Arvada municipal (right of way) contractor bond $20,000 $150-$300 $200-$500 $500-$1,000 $1,000-$2,000

* This table provides a ballpark estimate of potential bond costs. Bond pricing can fluctuate over time due to a number of factors. For exact pricing, please complete an application.

Can I get bonded with problematic finances?

You may find it more difficult to obtain a contractor license bond if your finances are not in the best shape. For applicants struggling with issues such as low credit scores, tax liens, bankruptcies, and civil judgments, Lance Surety Bonds operates its Bad Credit Surety Bonds program.

The bad credit bonding rates typically range between 5%-10%. They are slightly higher, as the bonding risk is increased. Still, due to our excellent partnerships with the top A-rated, T-listed surety companies, we are able to offer you a bonding option that matches your circumstances.

How can I get this bond?

The process for obtaining a Colorado contractor license bond is as follows:

  1. Fill out our online application form (it takes 5min)

  2. Our bonding specialists will get in touch and provide you with a free, no-obligation quote

  3. You can then buy the bond online

  4. Receive a digital as well as a hard copy of your bond

In case you want to learn more details about the bonding process, you can refer to our detailed overview of the How to Get Bonded page.

Lance Surety Bonds' experts are here to help. For any queries, you can reach us at (877) 514-5146.

How are bond claims handled for contractors?

Your Colorado contractor license bond serves as an additional layer of protection for your customers and for city authorities that have issued your license. If you fail to abide by relevant laws, you can receive a claim against your surety bond. A harmed party can seek reimbursement, which can be up to the full bond amount you have posted.

On proven claims, your surety may step in to cover the costs, so that claimants receive their compensation in due time. However, you are fully liable and have to repay it, as set in the bond indemnity language. This makes bond claims a serious financial threat for your business, which is why they are best to be avoided.

Additional Resources

START YOUR APPLICATION It's FREE. No Obligations. Approval in Minutes.

About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

Still Have Questions? Check Our FAQ Pages

What Our Clients Have To Say?

  • Kimberlee Ables
    Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
  • Andrew Poincot
    Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
  • Margie Martinez
    We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!

As Featured In