Becoming a general contractor in Colorado requires navigating local requirements, financial planning, and demonstrating competency. Unlike many other states that offer a centralized licensing system, Colorado entrusts the authority to regulate general contractors to its numerous cities and counties. This decentralized approach means contractors must meet separate, unique sets of rules for every jurisdiction where they plan to conduct business. Successfully obtaining a license addresses both statewide business formation and specific local competency standards.
Understanding Colorado’s Unique Approach to General Contractor Licensing
Colorado does not issue a statewide General Contractor license, which is a fundamental distinction from the licensing structure in most other states. While the Colorado Division of Professions and Occupations handles licenses for specific trades like electrical and plumbing, the authority for general construction rests with individual municipalities and regional building departments. This localized system means that a contractor must obtain a license from every city or county where they intend to bid on projects or pull building permits. A license obtained in one city is generally not recognized through reciprocity in a neighboring jurisdiction.
Establishing the Legal Business Entity
Before pursuing local licensing, the business must be legally established and registered with the state. This begins with the Colorado Secretary of State (SOS), where the contractor registers their chosen business structure, such as a Limited Liability Company (LLC) or a Corporation. Once registered, the business must secure a Federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS), even if there are no employees. The EIN is necessary for banking, tax filings, and is often required for local license applications. The contractor must also register for state sales or use tax accounts if the business will be involved in taxable transactions.
Essential Insurance and Bonding Requirements
General contractors must secure comprehensive financial protections to shield their business and their clients from liability. Commercial General Liability (CGL) insurance is mandatory for licensing in virtually all Colorado municipalities, with minimum coverage amounts varying by jurisdiction and license class. Workers’ Compensation insurance is required by state law for any business that has one or more employees. Sole proprietors or single-member LLCs without employees must typically file a formal rejection of coverage form. Many local jurisdictions also require a surety bond, which guarantees adherence to local building codes and contractual obligations.
Demonstrating Experience and Passing Necessary Examinations
Local licensing authorities require applicants to demonstrate a foundational level of experience and technical knowledge. Most major jurisdictions mandate that a designated qualifying party, often the owner or a supervisor, provide proof of several years of construction experience working under a licensed general contractor. Technical competency is confirmed through a standardized examination, most commonly those administered by the International Code Council (ICC). These open-book exams correspond to the license classification sought (Class A, B, or C). A passing score on the appropriate ICC exam is a prerequisite for submitting a local license application.
Navigating Local Licensing Requirements
The application process varies significantly across Colorado, requiring contractors to tailor their submissions to the specific demands of each municipality. These local requirements form the practical barrier to entry for general contractors in the state.
Denver
Denver utilizes a structured two-step process. Contractors must first obtain a Construction Supervisor Certificate before applying for the actual contractor license. This certificate is issued by the city’s Community Planning and Development division and requires proof of the requisite years of experience and a passing score on the relevant ICC exam. Denver’s license classifications are tiered, with Class A permitting work on any structure, Class B limiting projects to specific commercial types, and Class C focusing on residential structures. The city also requires the contractor to hold a $50,000 surety bond.
Colorado Springs
Contractor licensing for Colorado Springs and the surrounding El Paso County region is managed by the Pikes Peak Regional Building Department (PPRBD). PPRBD requires contractors to be licensed before performing any work that requires a permit within its jurisdiction. PPRBD uses a tiered system, such as Building Contractor A-1 for general commercial work and Building Contractor C for home construction. Applicants must submit a completed application, proof of their required insurance, and an approved passing score on an ICC standardized exam.
Aurora
The City of Aurora’s licensing process is overseen by its Development Services Department. Aurora issues licenses for Commercial Building Contractor and Residential Building Contractor, corresponding to the ICC General Building Contractor “A” or “B” and Residential Building Contractor “C” certifications. While Aurora does not list specific experience years for all license types, it requires registration and the submission of three job references for the general contractor license. Specialized licenses, such as Demolition Contractor or Remodeling Contractor, require two years of documented experience.
Ongoing Compliance and Renewal
Maintaining a general contractor license requires continuous adherence to both state and local regulations after the initial approval. License renewal frequency varies, with some municipalities requiring annual renewal, while others, like Denver, operate on a three-year cycle. Renewals typically require the submission of a new application, payment of a renewal fee, and updated documentation. Contractors must maintain active Commercial General Liability and Workers’ Compensation insurance policies at all times. Some municipalities may mandate continuing education credits to ensure contractors remain current on building codes and safety regulations.