Contractor Surety Bonds in Colorado Springs

A surety bond guarantees you'll do what you promised, whether that's following permit rules or finishing a contract and paying your suppliers. Client's Choice Insurance helps Colorado Springs contractors get the license, permit and contract bonds their projects require.

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Common Contractor Bonds

Bond	What it guarantees
License and permit bonds	That you'll follow the rules tied to a license or permit, such as right-of-way or excavation permits some cities and counties require.
Bid bonds	That if you win the bid, you'll sign the contract and provide the required performance and payment bonds.
Performance bonds	That you'll complete the project according to the contract.
Payment bonds	That your subcontractors, laborers and suppliers get paid.
Maintenance bonds	That you'll fix defects in materials or workmanship for a set period after completion.

When Colorado Requires Contract Bonds

Colorado law requires performance and payment bonds on public works contracts over $50,000 awarded by counties, cities, school districts and other local governments, and over $150,000 for state contracts. The bond must be at least half the contract amount. Private owners and lenders often require bonds too, so check your contract.

Bonds Are Not Insurance

Insurance protects you. A bond protects the project owner, the city or your suppliers.
If the surety pays a claim on your bond, you're expected to pay the surety back.
That's why sureties underwrite your credit, experience and, for contract bonds, your financial statements.

Most contractors need both: general liability insurance for accidents and a bond for the contract promise.

What a Surety Looks At

For license and permit bonds, usually just an application and a credit check. For bid, performance and payment bonds, expect questions about your work history, largest completed jobs, current work in progress, business and personal financial statements, and bank references. Bigger and longer contracts get more review.

Surety Bond Questions

How much does a bond cost?

You pay a premium that is a percentage of the bond amount. The rate depends on the bond type, your credit and, for contract bonds, your financial strength and experience.

How fast can I get a bond?

Many license and permit bonds can be issued quickly once the application is complete. Contract bonds take longer because the surety reviews your financials and the project.

Can I get bonded with less-than-perfect credit?

Often, yes, especially for smaller license and permit bonds, though the rate may be higher. Tell us up front and we'll match you with a surety that fits.

See all contractor insurance services, general contractor insurance and PPRBD insurance requirements.

Bond requirement summarized from C.R.S. 38-26-106, checked October 2026. Bond terms are set by the surety and the obligee.