This bond may also be referred to as a Fort Collins Contractor Surety Bond.
What is a surety bond, and why do I need one for my Fort Collins, CO Right-of-Way License?
A surety bond is a three-way agreement between a Principal (the individual applying for a Right-Of-Way Contractor’s License in Fort Collins), an Obligee (City of Fort Collins Engineering Department), and a surety company (the company financially backing the bond’s guarantee). A surety bond is NOT an insurance policy for the principal; instead, it protects the Obligee from any liability resulting from misconduct or negligence on behalf of the Principal. This bond guarantees that the Principal understands and agrees to comply with all laws, rules, codes, and regulations set forth by Fort Collins – detailed in the Fort Collins Code Sec. 15-367.
This $20,000 is a pre-licensure requirement for anyone applying for a Right-of-Way license in the City of Fort Collins. The costs of the bond are as follows:
- 1 year – $230
- 2 years – $402.50
- 3 years – $575
This bond is an “Instant Issue” bond, meaning that there is no underwriting required, and therefore no credit check for the application.
If, during the course of your work under a Right-of-Way License, there are any damages, liabilities, or issues that arise as a result of negligence or misconduct, there will be a claim filed against your bond. Your surety company will make the initial payments, at which point you will be obligated to repay the full amount, including any associated fees. In addition to repayment, your surety may revoke your bond, at which point your license will be invalid until you are able to file a new bond.
Claims against your bond are marks against your “credit” in the bond market, meaning that a history of claims will make it increasingly more difficult to obtain new bonds. Therefore, it is important that you and all employees working under the bond clearly understand the terms and expectations for both license and bond.

1 year - $230
2 years - $402.50
3 years - $575
Your bond will be issued within 1-3 days after you submit a completed application and payment.