What a contractor license bond is
Some states, and many cities and counties, make contractors post a bond to get or renew a license. It protects customers, workers and the public if the contractor breaks the licensing laws, for example by abandoning a job or not paying workers. The contractor repays the surety for any claim it pays.
In Colorado
Colorado has no statewide general contractor license or bond. Cities and counties license contractors, and some require a bond, such as Colorado Springs for concrete contractors.
- The state licenses electricians and plumbers through the Department of Regulatory Agencies; other trades are licensed locally.
You need this bond if you're
- A contractor applying for a new license
- A contractor renewing or reactivating a license
- A business changing its entity type or qualifier
- A contractor starting work in a city or county that requires its own bond
What the surety looks at
Basic business and owner details. Most license bonds need a credit check but no financial statements.