Colorado Public Construction Bonds

Colorado has separate State and local public-construction bond rules. State construction bids estimated above $50,000 require bid security; State contract awards above $150,000 generally require separate performance and payment bonds at 50% each. Title 38 sets distinct local public-works thresholds, including over $50,000 for specified local awards and a separate over-$150,000 category for local awards to private entities for work on publicly owned property using public or private financing. Identify who awards the contract before applying the State threshold.

What Is Surety Bonds?

A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. Read the national Surety bonds guide.

Colorado Surety Bonds Requirements

Requirement	Details
State construction bid security	Competitive sealed bids for state construction estimated above $50,000 require bid security of at least 5% of the bid; acceptable form may be a bond, equivalent cash or another form satisfactory to the state. ¹
State contract performance and payment security	When a state construction contract exceeds $150,000, § 24-105-202(1) requires a 50% performance bond and a separate 50% payment bond, or other security satisfactory to the state. ^1,³
Local public-works and public-property security	Title 38 requires a penal bond with good and sufficient surety before work on specified county, municipal, or school-district public works over $50,000; listed public bodies may require one at $50,000 or less. Section 38-26-106 separately applies to local public-works awards over $50,000 and to local awards over $150,000 to private entities for specified work on publicly owned property. The bond or other acceptable surety is generally at least half the contract amount, with a distinct annual-maximum alternative for public-works contracts valued at $500 million or more. Confirm the awarding body’s form and amount. ⁴

What Should You Watch for With Surety Bonds in Colorado?

Budget for separate bid and award stages
Colorado’s state procurement statute triggers bid security above an estimated $50,000, but the statutory performance and payment bonds attach to an awarded state construction contract above $150,000. The invitation can require security below those thresholds, so check the solicitation rather than assuming a contract under $150,000 needs none. ^1,³
Private financing does not necessarily avoid public-site bonding
Section 24-105-202(4) extends the contract-bond section to construction contracts awarded to private entities for work on publicly owned property, regardless of whether public or private money or financing is used. That scope clause does not itself mean every such contract requires a bond: § 24-105-202(1) sets the state threshold above $150,000, and subsection (2) preserves the State’s authority to require security in other circumstances. Check the award amount and solicitation. ^1,²
The two 50% bonds protect different interests
The performance bond secures the state’s contract performance interest. The payment bond protects persons supplying labor and material to the contractor or its subcontractors. Check that the surety proposal names the right obligee, includes both obligations, and uses the eligible statutory or solicitation form. ¹
A missing bid bond can make a bid nonresponsive
When the procurement officer requires bid security, the statute says noncompliance requires rejection of the bid as nonresponsive. Confirm whether the bid documents allow cash or other security and whether the amount is 5% or a higher specified sum. ¹
Use the local public-works thresholds for local awards
The State’s $150,000 award threshold is not a single threshold for every public project. Under Title 38, specified local public works generally trigger a bond above $50,000, and a public body may require one at or below that amount. A separate clause addresses local awards over $150,000 to private entities for listed work on publicly owned property, with public or private financing. Identify the awarding body and contracting principal, then ask the owner which Title 38 provision, bond form, and penal sum its solicitation applies. ⁴

Which Surety Bonds Providers Have Colorado License Records?

These providers publish a national listing for Surety bonds; the license records below name the licensed entities and roles. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Colorado. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

TechInsurance
Insurance producer · checked 2026-09-28
Specialty Program Group LLC
TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. ¹⁷
TechInsurance arranges surety bonds for small businesses.

Who Regulates Insurance in Colorado?

Colorado Division of Insurance

The Division administers Colorado insurance laws and regulates insurers and insurance producers. You can search producer licenses through Colorado’s official DORA lookup and send insurance complaints to the Division. ^5,^6,⁷

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint
Phone: (303) 894-7499

Surplus-Lines Tax and Stamping Office in Colorado

Reported tax rate. 3% of net premium ^8,^10,⁹

When Colorado is the insured’s home state, its surplus-lines tax is 3% of taxable premium. The Colorado Surplus Lines Association says insurer or broker fees charged in connection with the placement are included in the tax base; federal or other-state taxes and examination fees are excluded. For multistate risks, a tax-sharing agreement may allocate premium tax to other states.

What Should You Ask Before Buying Surety Bonds in Colorado?

Who is awarding the contract—the State, a county, city/county, municipality, school district, or another political subdivision—and is the contracting principal a private entity working on publicly owned property?
Which bid-stage and post-award threshold applies to this awarding body, and does the solicitation require additional or under-threshold security?
Will the obligee accept a surety bond, cash or another permitted security, and what forms are required?
What indemnity and collateral commitments are required from the principal and any owners?

Surety Bonds in Colorado: Frequently Asked Questions

Are Colorado bid security and performance/payment bonds the same bond?

No. Bid security accompanies a qualifying competitive bid and is at least 5% under the state statute. For state construction contracts above $150,000, separate performance and payment security is due after award; each bond is 50% of the contract price when bonds are used. ¹

Can privately financed work avoid Colorado’s state bond rule when it is on public property?

Not necessarily. C.R.S. § 24-105-202(4) expressly covers private-entity construction situated on publicly owned property using public or private money or financing. ^1,²

Who is the principal and obligee on a Colorado state construction bond?

The awarded contractor is the principal; the performance bond is delivered to the State for contract performance, and the payment bond protects labor and material suppliers. The surety guarantees each bond’s stated obligation, so confirm the obligee and supplier-beneficiary terms in the bid documents. ¹

Does Colorado’s $150,000 State award threshold apply to local public works?

No single State threshold applies to every award. Title 38 separately addresses local public works above $50,000, local public bodies’ authority to require a bond at or below $50,000, and local awards above $150,000 to private entities for specified work on publicly owned property. Check the awarding body, project type, and solicitation. ⁴

Sources for Surety Bonds in Colorado

1
Colorado Revised Statutes 2026, Title 24—Government—State. Colorado General Assembly, Office of Legislative Legal Services; Article 105, §§ 24-105-201(1)–(4), 24-105-202(1)–(4), and source history for § 24-105-202(4); 2026 edition current with 2026 Second Regular Session changes. Accessed 2026-09-28.
2
Senate Bill 19-138, signed act. Colorado General Assembly; § 2, adding C.R.S. § 24-105-202(4), p. 1; effective 2019-08-02. Accessed 2026-09-28.
3
2014 Colorado Session Laws, Chapter 378 (HB 14-1387). Colorado General Assembly; Section 64, p. 55, amending C.R.S. § 24-105-202(1) to set the state construction contract threshold above $150,000; § 72(2) applicability to contracts entered on or after the act’s effective date; approved 2014-06-06. Accessed 2026-09-28.
4
Colorado Revised Statutes 2026, Title 38—Property—Real and Personal. Colorado General Assembly, Office of Legislative Legal Services; 2026 edition current through the Second Regular Session of the 75th General Assembly; §§ 38-26-105(1)–(3), 38-26-106(1)–(3), and SB 19-138 source history. Accessed 2026-09-28.
5
Colorado Division of Insurance. Colorado Department of Regulatory Agencies; Official insurance regulator homepage; DOI oversight and consumer resources. Accessed 2026-09-28.
6
DORA Online Services. Colorado Department of Regulatory Agencies; Official DORA online services portal; select Online License Verification and insurance profession. Accessed 2026-09-28.
7
File a Complaint. Colorado Division of Insurance; Official form and instructions for insurance complaints. Accessed 2026-09-28.
8
HB23-1111: Unauthorized Insurance Premium Tax Rate. Colorado General Assembly; Enacted bill harmonizes unauthorized insurance tax rate at 3%, effective January 1, 2024; parity with surplus-lines rate. Accessed 2026-09-28.
9
Frequently Asked Questions. Surplus Lines Association of Colorado; FAQ: Colorado home-state tax; fee charged by insurer or broker in connection with placement included in premium base; qualifying federal/other-state taxes and examination fees excluded; commercial exempt policyholder due-diligence exception. Accessed 2026-09-28.
10
Colorado Revised Statutes, Title 10 (2024). Colorado General Assembly, Office of Legislative Legal Services; C.R.S. § 10-5-111.5, surplus-lines premium tax and home-state application. Accessed 2026-09-28.
11
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
12
Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
13
Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
14
About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
15
Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
16
About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
17
Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
18
Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Colorado Public Construction Bonds

What Is Surety Bonds?

Colorado Surety Bonds Requirements

What Should You Watch for With Surety Bonds in Colorado?

Budget for separate bid and award stages

Private financing does not necessarily avoid public-site bonding

The two 50% bonds protect different interests

A missing bid bond can make a bid nonresponsive

Use the local public-works thresholds for local awards