The City of Denver requires contractors to have Right of Way Licenses and post Right of Way License Bonds when performing work in the public right-of-way or other public property in the City of Denver and County of Denver. A Right of Way Bond is a type of contractor license bond. Right of Ways are temporary access to restricted lands. Usually a Right of Way permit must be issued to obtain this right on public lands. To obtain these permits in the city and count of Denver, Colorado, a contractor must post a Right of Away Bond in the appropriate amount. These amounts are determined by the type of work the contractor is performing on the grounds. The CITY AND COUNTY OF DENVER is the Obligee on the bonds. The Contractor seeking the Right of Way License is the Principal and the bond guaranteeing the obligation is the Surety.
What Type of Contractors Need Denver Right of Way Bonds?
Denver has seven classifications of contractors who need these surety bonds. These contractors include General Contractors, Paving Contractors, Sewer Contractors, Excavation Contractors, Structural Contractors, Cement Sidewalk Contractors and Special Contractors.
General Contractors
General Contractors may perform any or all the other trades. However, to be licensed as a General Contractor, the applicant must be able to document a minimum of five years’ experience in each of the other Right of Way trades. The licensing fee for a General Right of Way contractor is $200. To obtain a General Contractor Right of Way License, a State of Colorado Plumbing Licensed Contractor or Denver Certified Drainlayer Supervisor must be employed while the Right of Way license is in place. Also, the Employee Trade License Verification Form must be filled out and included with the application. Another difference for those wanting a General Contractor Right of Way Licensing is that they must fill out an equipment schedule. You can find that here.
What Does the General Contractor Right of Way Bond Guarantee?
Basically, this bond guarantees that the General Contractor will follow all local rules and ordinances and be responsible for any damages. The exact working is,
“Faithfully observe, perform and abide by each and every ordinance relating to sewer layer, sewer contractor, sidewalk contractor, structural contractor, paving contractor, and special contractor in the right-of-way or other public property of the City and the Rules and Regulations of the Department of Public Works, according to the true intent and meaning in such case; and PROVIDED FURTHER, that if the said GENERAL CONTRACTOR shall satisfy all claims and demands incurred by the GENERAL CONTRACTOR in the performance of any such GENERAL work, and shall fully indemnify and save harmless the CITY from all damages, claims, demands, expense and charge of every kind (including claims of patent infringement) arising from any act, omission, or neglect of said GENERAL CONTRACTOR, its agents, or employees with relation to any work performed under a license; and shall fully reimburse and repay to the CITY all costs, damages and expenses which it may incur in making good any default based – 2 – Rev. 2/10/15 upon the failure of the GENERAL CONTRACTOR to fulfill it’s obligation to furnish maintenance, repairs or replacements for the full guarantee period provided in the ordinance.”
What is the Amount of the General Contractor Right of Way Bond?
The General Contractor Right of Way License Bond amount is $50,000. A copy of this bond form can be found here. These bonds require a completed application and credit check. They are priced based on the personal credit of the owners. Cost typically start around $500 for one year with multiyear discounts given.
Paving Contractors
For purposes of Right of Way Bonds, Denver defines Paving Contractors as those performing work relating to street and/or alley paving to include the work of laying of gravel base course, asphalt or concrete paving, laying of concrete curb and/or gutter, concrete sidewalks, driveways, and installation of drainage structures and other items of work incidental to said street or alley paving in the right-of-way or other public property of the City. As with General Contractors, Paving Contractor looking for a Right of Way License must be able to demonstrate five years of experience in the field. In addition to an application, a Paving Contractor must pay a licensing fee of $125 and also submit an Equipment Schedule.
What Does the Paving Contractor Right of Way License Bond Guarantee?
The bond basically guarantees that the contractor abides by rules and regulations and reimburse the City/County for any damages. The exact wording is,
“Faithfully observe, perform and abide by each and every ordinance relating to street and/or alley paving to include the work of laying of gravel base course, asphalt or concrete paving, laying of concrete curb and/or gutter, concrete sidewalks, driveways, and installation of drainage structures and other items of work incidental to said street or alley paving in the right-of-way or other public property of the City and the Rules and Regulations of the Department of Public Works, according to the true intent and meaning in such case; and PROVIDED FURTHER, that if the said PAVING CONTRACTOR shall satisfy all claims and demands incurred by the PAVING CONTRACTOR in the performance of any such PAVING work, and shall fully indemnify and save harmless the CITY from all damages, claims, demands, expense and charge of every kind (including claims of patent infringement) arising from any act, omission, or neglect of said PAVING CONTRACTOR, its agents, or employees with relation to any work performed under a license; and shall fully reimburse and repay to the CITY all costs, – 2 – Rev. 2/10/15 damages and expenses which it may incur in making good any default based upon the failure of the PAVING CONTRACTOR to fulfill it’s obligation to furnish maintenance, repairs or replacements for the full guarantee period provided in the ordinance.”
What is the Amount of the Paving Contractor Right of Way Bond?
The Paving Contractor Right of Way License Bond amount is $50,000. A copy of this bond form can be found here. These bonds require a completed application and credit check. They are priced based on the personal credit of the owners. Cost typically start around $500 for one year with multiyear discounts given.
Sewer Contractor
For purposes of Right of Way Bonds, Denver defines Sewer Contractors as those performing work relating to the opening, uncovering, or laying of public or private sanitary or storm sewers in the right-of-way or other public property of the City. In addition to an application, Sewer Contractors must pay a $50 license fee and they must also show five years of experience in the trade. An additional requirement for Sewer Contractors is that they must employ a State of Colorado Plumbing Licensed Contractor or Denver Certified Drainlayer Supervisor.
What Does the Sewer Contractor Right of Way Bond Guarantee?
In short, the bond guarantees that the Sewer Contractor will follow local rules and ordinances and be responsible for any damages. The exact wording is as follows,
“Faithfully observe, perform and abide by each and every ordinance relating to the opening, uncovering, or laying of public or private sanitary or storm sewers in the right-of-way or other public property of the City and the Rules and Regulations of the Department of Public Works, according to the true intent and meaning in such case; and PROVIDED FURTHER, that if the said SEWER CONTRACTOR shall satisfy all claims and demands incurred by the SEWER CONTRACTOR in the performance of any such sewer work or excavation, and shall fully indemnify and save harmless the CITY from all damages, claims, demands, expense and charge of every kind (including claims of patent infringement) arising from any act, omission, or neglect of said SEWER CONTRACTOR, its agents, or – 2 – Rev. 2/10/15 employees with relation to any work performed under a license; and shall fully reimburse and repay to the CITY all costs, damages and expenses which it may incur in making good any default based upon the failure of the SEWER CONTRACTOR to fulfill it’s obligation to furnish maintenance, repairs or replacements for the full guarantee period provided in the ordinance.”
What is the Amount of the Sewer Contractor Right of Way Bond?
The Sewer Contractor Right of Way License Bond amount is $50,000 and the bond form can be found here. These bonds require a completed application and credit check. They are priced based on the personal credit of the owners. Cost typically start around $500 for one year with multiyear discounts given.
Excavation Contractors
For purposes of Right of Way Bonds, Denver defines Excavation Contractors as performing work relating to excavation in public, street or alley or other public property of the City. Excavation Contractor must also submit an application and pay a license fee of $50. They must also have five years of experience in the trade.
What Does the Excavation Contractor Right of Way Bond Guarantee?
The bond guarantees that the Excavation Contractor will follow local rules and ordinances and be responsible for any damages. The exact wording is,
“Faithfully observe, perform and abide by each and every ordinance relating to excavating in the right-of-way or other public property of the City and the Rules and Regulations of the Department of Public Works, according to the true intent and meaning in such case; and PROVIDED FURTHER, that if the said EXCAVATION CONTRACTOR shall satisfy all claims and demands incurred by the EXCAVATION CONTRACTOR in the performance of any such excavation, and shall fully indemnify and save harmless the CITY from all damages, claims, demands, expense and charge of every kind (including claims of patent infringement) arising from any act, omission, or neglect of said EXCAVATION CONTRACTOR, its agents, or employees with relation to any work performed under a license; and shall fully reimburse and repay to the CITY all costs, damages and expenses which it may incur in making good any default based upon the failure of the EXCAVATION CONTRACTOR to fulfill it’s obligation to – 2 – Rev. 2/10/15 furnish maintenance, repairs or replacements for the full guarantee period provided in the ordinance.”
What is the Amount of the Excavation Contractor Right of Way Bond?
The Excavation Contractor Right of Way License Bond amount is $50,000 and the bond form can be found here. These bonds require a completed application and credit check. They are priced based on the personal credit of the owners. Cost typically start around $500 for one year with multiyear discounts given.
Structural Contractors
For purposes of Right of Way Bonds, Denver defines Structural Contractors as performing work relating to constructing bridges, viaducts, public buildings and any and all other public and private structures in the right-of-way or other public property of the City. Structural Contractors must complete a Right of Way Contractor License Application and pay a $100 license fee. They must also have five years of experience in the trade.
The Structural Contractor Right of Way License Bond amount is $25,000 and the bond form can be found here. These bonds are easily obtainable and only an application is needed in most cases. The cost of these surety bonds are based on personal credit and start around $250 per year. Surety bond companies usually give discounts for purchasing multiple years in advance.
What Does the Structural Contractor Right of Way Bond Guarantee?
The bond guarantees that the Structural Contractor will follow local laws and regulations and be responsible for any damages. The wording is as follows,
“Faithfully observe, perform and abide by each and every ordinance relating to constructing bridges, viaducts, public buildings and any and all other public and private structures in the right-of-way or other public property of the City and the Rules and Regulations of the Department of Public Works, according to the true intent and meaning in such case; and PROVIDED FURTHER, that if the said STRUCTURAL CONTRACTOR shall satisfy all claims and demands incurred by the STRUCTURAL CONTRACTOR in the performance of any such STRUCTURAL work, and shall fully indemnify and save harmless the CITY from all damages, claims, demands, expense and charge of every kind (including claims of patent infringement) arising from any act, omission, or neglect of said STRUCTURAL CONTRACTOR, its agents, or employees with relation to any work performed under a license; and shall fully reimburse and repay to the CITY all costs, damages and expenses which it may incur in making good any default based upon the failure of the STRUCTURAL CONTRACTOR to fulfill it’s obligation to – 2 – Rev. 2/10/15 furnish maintenance, repairs or replacements for the full guarantee period provided in the ordinance.”
Cement Sidewalk Contractors
For purposes of Right of Way Bonds, Denver defines Cement Sidewalk Contractors as performing work relating to laying sidewalks and driveways, making of curb cuts, laying of curb and/gutter, installing minor drainage structures within or connected to the public ways and places, in the right-of-way or other public property of the City. Cement Sidewalk Contractors must complete a Right of Way Contractor License Application and submit a $50 license fee. They must also have five years of experience in the trade.
What Does the Cement Sidewalk Contractor Bond Guarantee?
The bond guarantees that the Cement Sidewalk Contractor will abide by the ordinances, rules, and regulations. It also requires the contractor to pay for damages that may be caused. The wording on the bond is as follows,
“Faithfully observe, perform and abide by each and every ordinance relating to laying sidewalks and driveways, making of curb cuts, laying of curb and/gutter, installing minor drainage structures within or connected to the public ways and places, in the right-of-way or other public property of the City and the Rules and Regulations of the Department of Public Works, according to the true intent and meaning in such case; and PROVIDED FURTHER, that if the said CEMENT SIDEWALK CONTRACTOR shall satisfy all claims and demands incurred by the CEMENT SIDEWALK CONTRACTOR in the performance of any such CEMENT SIDEWALK work, and shall fully indemnify and save harmless the CITY from all damages, claims, demands, expense and charge of every kind (including claims of patent infringement) arising from any act, omission, or neglect of said CEMENT SIDEWALK CONTRACTOR, its agents, or employees with relation to any work performed under a license; and shall fully reimburse and repay to the CITY all costs, damages and expenses which it may – 2 – Rev. 2/10/15 incur in making good any default based upon the failure of the CEMENT SIDEWALK CONTRACTOR to fulfill it’s obligation to furnish maintenance, repairs or replacements for the full guarantee period provided in the ordinance.”
What is the Amount of the Cement Sidewalk Contractor Right of Way Bond?
The Cement Contractor Right of Way License Bond amount is $10,000 and the bond form can be found here. These Right of Way Bonds are written freely. No underwriting or credit check is required. The cost of these bonds starts around $100 for one year. Most surety bond companies provide a discount for purchasing multiple years in advance. For example, the cost of a three-year bond can be as low as $250 with some bond companies.
Special Contractor
For purposes of Right of Way License and Bonds, Denver defines Special Contractors performing work relating constructing or installing traffic control devices, fencing, lighting projects, water lines, sprinkling systems, or any other device or object not specifically covered by the licensing provisions contained in Articles 339, 339-A, 339-B, 339-D, 338, 333, or 323 of the Revised Municipal Code, constructed or installed within the right-of-way or other public property of the City. The contractor must complete The Right of Way Contractor License Application and pay a $50 license fee. The contractor must also have 5 years of experience in the trade.
What Does the Special Contractor Right of Way Bond Guarantee?
The bond guarantees that the Special Contractor will follow all laws and ordinances and cover any damages that it may cause. The wording on the bond is as follows,
“Faithfully observe, perform and abide by each and every ordinance relating to constructing or installing traffic control devices, fencing, lighting projects, water lines, sprinkling systems, or any other device or object not specifically covered by the licensing provisions contained in Articles 339, 339-A, 339-B, 339-D, 338, 333, or 323 of the Revised Municipal Code, constructed or installed within the right-of-way or other public property of the City and the Rules and Regulations of the Department of Public Works, according to the true intent and meaning in such case; and PROVIDED FURTHER, that if the said SPECIAL CONTRACTOR shall satisfy all claims and demands incurred by the SPECIAL CONTRACTOR in the performance of any such SPECIAL work, and shall fully indemnify and save harmless the CITY from all damages, claims, demands, expense and charge of every kind (including claims of patent infringement) arising from any act, omission, or neglect of said SPECIAL CONTRACTOR, its agents, or employees – 2 – Rev. 2/10/15 with relation to any work performed under a license; and shall fully reimburse and repay to the CITY all costs, damages and expenses which it may incur in making good any default based upon the failure of the SPECIAL CONTRACTOR to fulfill it’s obligation to furnish maintenance, repairs or replacements for the full guarantee period provided in the ordinance.”
What is the Amount of the Special Contractor Right of Way Bond?
The Special Contractor Right of Way License Bond amount is $10,000 and the bond form can be found here. These bonds are written freely without an application or credit check. The cost for these bonds typically starts around $100 per year with multiyear discounts given by most surety bond companies.
Claims Against Denver Contractor Right of Way License Bonds
If a claim is made against any of these Right of Way Bonds, the surety bond company issuing the bond will investigate the claim. If the claim is found to be valid, the contractor will need to take care of the claim or the surety bond company may be forced to pay out under the bond. If this happens, they will seek reimbursement from the Contractor. This is known as the Principle of Indemnity and it gives the Contractor a strong incentive to fulfill the bond guarantees.
Cancellation of the Denver Right of Way Bond
The surety bond company has the right to cancel the contractor’s Right of Way Bond by giving the Manager of Public Works of the City and County of Denver, thirty days written notice by certified mail. After thirty days the surety bond company’s liability will terminate. The Contractor will need to replace the surety bond company or have their Right of Way License revoked.
Additional Surety Bonds Are Often Needed
Right of Way Bonds are needed to get a Right of Way License in Denver. However, contractors performing this type of work will likely also need contract surety bonds as well. These bonds include bid bonds, performance bonds and payment bonds. The underwriting and costs to obtain these bonds will be different than Right of Way Bonds.
Obtaining Right of Way License Bonds should be easy for Denver Contractors. Our Surety experts are available to help. Contact us anytime for more information.