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Colorado Construction Surety Bonds

Builders in Colorado often need construction bonds when public agencies or private owners require project protection. Surety Bonds Agent helps you manage the request with confidence and efficiency. Start online for trusted assistance.

Contact Us for a Free Construction Bond Quote

It’s easy with our simple 3-step process:

  1. Apply Online
  2. Get Quote
  3. Receive Bond
about bond type

What Is a Construction Bond?

Colorado contractors may be required to furnish project owners with certain construction surety bonds to protect them against the financial harm that can result from a contractor’s regulatory or contractual violation.

img What Types of Colorado Construction Bonds May Be Needed?

Colorado does not require contractors to be licensed at the state level, but some local jurisdictions do. In some cases, purchasing a contractor license bond is a prerequisite for licensure.

Additionally, Colorado’s Little Miller Act requires contractors working on certain state-funded projects to purchase both performance bonds and payment bonds. Many private project owners also require them. Bid bonds may be required when contractors are selected through competitive bidding. These are the most commonly required Colorado construction bonds, but both government contracting authorities and private project owners may require a contractor to furnish any of the following:

  • Maintenance bonds
  • Subdivision/site improvement bonds
  • Supply bonds
  • Solar decommissioning bonds
  • Right of Way bonds
img How Does a Colorado Construction Bond Work?

Colorado construction bonds are legally binding on all three parties to the surety bond agreement:

  • The obligee—the state or local contracting authority or private project owner requiring the bond
  • The principal—the contractor who must purchase the bond
  • The surety—the bond’s guarantor

The required bond amount—the maximum that will be paid on a valid claim—is established by the obligee. The surety’s guarantee that valid claims will be paid takes the form of an extension of credit to the principal for that purpose. The surety pays the claim initially and gives the principal a certain amount of time to repay that debt. The surety can sue a principal who fails to do so.

costs

How Much Does It Cost?

The annual premium for a Colorado construction bond is calculated by multiplying two factors—the required bond amount and the premium rate. The premium rate is set by the surety based on the principal’s creditworthiness, which is a measure of the risk of not being repaid for claims paid on the principal’s behalf.

A high personal credit score means the risk of the surety not being repaid is low, which deserves a low premium rate. On the other hand, a low score signals higher risk, which calls for a higher premium rate.

The premium rate for a principal with good credit usually is in the range of 1% to 3%.

step by step guide

How Do Colorado Construction Bonds Work?

  • Choose Your Bond Type

    Select the bond you need — commercial, contract, or any specialized bond. We help you find exactly what is required in your state.

  • Submit a Quick Application

    Complete a short online form. It only takes a few minutes, with no extra paperwork or long verification steps.

  • Get Approved & Receive Your Bond

    Get fast approval and receive your bond instantly by email. Your document is ready to use right away.

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Why Work With Us?

Easy Application Process

Simply fill out our convenient online application form to get started.

Extensive Carrier Network

We work with a wide range of carriers to provide many options to our clients.

Competitive Rates

As an independent agency, we can leverage our carrier network to find the most competitive rates for the bonds you need.

Quick Turnarounds

We work to get you bonded as quickly as possible, often in 24 hours or less.

Exceptional Service

Our experienced surety bond agents provide personalized assistance to help you understand your bonding requirements and options.

Call us Today!

And get a free consultation.

866-362-6637
who we work with

Our Insurance Company Partners Nationwide

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Testimonials

What our customers say about us

Super easy process. I found the bond I needed in minutes and received the approved document the same day. Great experience overall.

Emily R., Business Owner
Contractor

The application was fast, the support team was responsive, and the pricing was clear. Very smooth and professional. Everything was explained clearly, and I appreciated how quickly I received my bond.

Jason M., Contractor
Small Business Owner

Super easy process. I found the bond I needed in minutes and received the approved document the same day. Great experience overall.

Emily R., Business Owner
Oberman & Oberman

The application was fast, the support team was responsive, and the pricing was clear. Very smooth and professional. Everything was explained clearly, and I appreciated how quickly I received my bond.

Jason M., Contractor
Oberman & Oberman

Request a Quote

Request an online quote today! Or speak with one of our knowledgeable surety bond agents about the commercial bonds you are interested in.

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