Contractor coverage and compliance, built for Colorado.

Colorado has no statewide general contractor license, so the rules depend on where you work. Here is a plain-language overview, with the official sources to confirm it.

Who needs a license in Colorado

Colorado does not license general contractors at the state level. General contractor licensing is handled locally by each city or county, so requirements and thresholds vary by jurisdiction. The state does license specific trades: electricians and plumbers are licensed through the Department of Regulatory Agencies (DORA). Check the local jurisdiction for general contracting and DORA for licensed trades.

Bonds in Colorado

Because there is no statewide general contractor license, there is no statewide contractor license bond. Contractor and license bonds are set by the local jurisdiction and vary by city or county. Confirm any bond requirement with the jurisdiction where you work.

Workers compensation in Colorado

Colorado generally requires workers comp for any employer with one or more employees, including part-time and family members, and construction is explicitly covered. A construction sole proprietor or partner generally must either carry coverage on themselves or formally reject it using the proper form; an unfiled rejection is treated as non-compliance.

Owner and officer exemptions

Colorado allows limited exemptions for sole proprietors, working partners, corporate officers, and LLC members, but construction is treated more strictly, and a construction sole proprietor or partner generally must carry coverage or file the rejection form. Verify the current form and process with the Division of Workers' Compensation.

Independent contractors and subcontractors

Colorado uses a direction-and-control plus independently-established-business standard rather than the strict ABC test. Uninsured subs remain a liability and audit exposure regardless of label.

Public works and prevailing wage

On Colorado public projects, a payment bond and a performance bond are generally required when the contract price exceeds $50,000, with the performance bond not less than half the amount. Colorado also applies prevailing wage to larger public projects and, under the Keep Jobs in Colorado Act, generally requires Colorado labor to perform at least 80 percent of the work on publicly financed projects. Confirm the current thresholds with the state.