Do I need a bond for each project?

Complete Guide to Bonds for Each Project

Why This Question Matters for Colorado and Utah Residents

Understanding whether you need a separate bond for every project impacts your ability to win work, remain compliant, and avoid costly delays throughout Colorado and Utah. Here’s why it matters:

• Regulatory Compliance: Most cities and state agencies in Colorado and Utah require project-specific bonds—especially for public contracts. Missing a bond can lead to disqualification or job shutdowns.
• Business Growth: Securing the right bond quickly is critical. Regional data shows 42% of contractors experience delays when bond requirements are unclear or missed.
• Risk Management: The right bond provides financial protection against subcontractor failure, compliance claims, and project disputes—dispute resolution is 45 days faster with proper bonding.

What Most People Get Wrong

Many small and mid-size businesses mistakenly assume a single bond covers all their projects, especially if they’ve used a blanket bond in the past. In reality, blanket/continuous bonds are rare and typically limited to large firms with proven bonding history.

Others underestimate the complexity of local regulations—missing out on work or facing unexpected premium costs (which generally range from $500–$3,000 per $100,000 bond, depending on credit and project size).

The Complete Picture

Whether you need a bond for each project depends on the requirements of your project owner or the public entity (“obligee”). In Colorado and Utah, nearly all public works and most private commercial jobs require a unique performance or permit bond for each individual project. Only very large, established contractors may have access to blanket (all-project) bonds by special arrangement, and these are rare in Northern Colorado and Utah.

If your contract does not specify a blanket bond, budget for and secure separate bonds for each new job. Some businesses consider bonding alternatives (like self-insurance or cash deposits), but these carry their own regulatory and financial risks. If unsure, always clarify requirements with your project’s sponsor and consult a local bond expert—compliance and timing are everything in our regional market.

Making the Right Decision for Colorado and Utah Residents

Question 1: What does your contract or project owner require?

Every project may set unique bonding terms. Always:

• Review bid documents for bond type/amount (performance, permit, etc.)
• Ask the project owner or city official about their bond requirements
• Verify if multi-project or blanket bonds are allowed (rare, but possible for major contractors)

Question 2: Are you eligible for a blanket or continuous bond?

Blanket bonds usually require a strong track record and high volume of work. Examples:

• If your business consistently completes multiple major projects and maintains an excellent claims record, you may qualify for a blanket bond—most smaller businesses must secure one per project.

Question 3: Do your bonds match local and state compliance requirements?

Regulations differ across cities and counties:

• Denver, Salt Lake City, and Fort Collins all have unique minimum bond values and renewal rules.
• Missing a bond or failing to renew can halt your project and jeopardize future work—budget ahead for annual or project-based premiums (typically 0.5–3% of the bond amount).