HB 26-1311

HB 26-1311 is a Colorado law that allows contractors to provide a bond instead of having money withheld from their construction contract payments as retainage. This applies if the contract is worth at least $150,000 and the contractor offers a bond meeting specific standards set by the law. The property owner must accept this bond in place of withholding funds. Subcontractors can also require contractors to provide similar bonds for their portion of the work. Since the bill has been signed into law, it is now enforceable and will affect construction contracts and workers involved in projects over $150,000.

Official Summary

Under Colorado law, a private property owner is prohibited from retaining more than 5% of a construction contract as retainage if the contract is at least $150,000. The act authorizes a contractor to submit a retainage bond in lieu of withholding retainage, and a private property owner must accept the retainage bond and not withhold the retainage if the retainage bond meets the act's standards. A subcontractor may require the contractor to submit a bond in lieu of retainage for the subcontractor's portion of the retainage. The contractor may require the subcontractor to submit a like bond to the contractor.(Note: This summary applies to this bill as enacted.)

Topics

Votes