General Contracting Compliance Guide — Denver, Colorado

Summary

Operating as a general contractor in Denver requires both state and local compliance. You'll need a Colorado state contractor license from DORA (Class A, B, or C depending on project size), which involves passing exams, proving experience, and maintaining continuing education. Additionally, you must obtain a Denver business license and pull permits through the city's CPD department for most construction work. The permit process is streamlined through the online ePermit system, but proper planning for review times and inspections is essential. Insurance requirements include general liability coverage and workers' compensation, with many projects requiring higher limits or bonds. Denver's strong construction market means good opportunities but also higher costs and competitive bidding. Success requires staying current with both state licensing requirements and Denver's local building codes and permit processes. The city offers good online resources and support, but contractors should budget for Denver's above-average insurance and operational costs when pricing projects.

License Requirements

General contractors in Denver must obtain a state contractor license through the Colorado Department of Regulatory Agencies (DORA). A Class A license is required for projects over $525,000, Class B for projects $100,001-$525,000, and Class C for projects up to $100,000. Applicants must pass a business and law exam plus a trade-specific exam, demonstrate 4 years of construction experience, and provide financial statements. Denver also requires a city business license from the Business Licensing Division. Licenses must be renewed annually with continuing education requirements of 6 hours for Class A/B and 3 hours for Class C.

Permit Requirements

Building permits are required through Denver's Community Planning and Development (CPD) department for most construction work including new construction, additions, structural modifications, and systems installations. Applications can be submitted online through the Denver ePermit system or in person at the CPD counter. Typical review times are 10-15 business days for standard residential projects and 20-30 days for commercial projects. Permit fees vary by project scope, typically ranging from $100-$500 for minor residential work to several thousand dollars for major commercial projects. Inspections are required at various phases including foundation, framing, electrical, plumbing, and final.

Insurance Requirements

Colorado requires general contractors to carry general liability insurance with minimum coverage of $500,000 per occurrence and $1,000,000 aggregate. Workers' compensation insurance is mandatory for contractors with employees, with no minimum amount specified but must meet state requirements. Many clients and municipalities require higher liability limits of $1-2 million. Contractors may also need to provide performance and payment bonds for public projects or large private projects, typically 100% of contract value. Commercial auto insurance is required if using vehicles for business purposes.

Typical Cost Ranges

General contracting project costs in Denver vary significantly by scope. Home additions typically range from $150-$300 per square foot. Kitchen remodels range from $25,000-$75,000 for mid-range projects and $75,000-$150,000+ for high-end renovations. Bathroom remodels typically cost $15,000-$45,000. New home construction averages $150-$250 per square foot depending on finishes. Commercial tenant improvements range from $50-$150 per square foot. These ranges reflect Denver's higher-than-average construction costs due to strong market demand and material/labor costs.

Compliance Checklist