Read the full stored bill text
SENATE BILL 26-074
BY SENATOR(S) Carson and Snyder, Liston, Pelton R.;
also REPRESENTATIVE(S) Camacho and Nguyen, Bacon, Carter, Duran,
Marshall.
CONCERNING CLARIFICATION OF THE PENALTY FOR CLAIMING AN EXCESSIVE
AMOUNT IN A PUBLIC CONSTRUCTION PERFORMANCE BOND DISPUTE.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 3 8-22-10 I, amend (1 );
and add (7) as follows:
38-22-101. Liens in favor of whom -when filed.
(1) Every person who furnishes or supplies laborers, machinery,
tools, or equipment in the prosecution of the work, and mechanics,
materialmen, contractors, subcontractors, builders, and all persons of every
class performing labor upon or furnishing directly to the owner or persons
furnishing labor, laborers, or materials to be used in construction, alteration,
improvement, addition to, or repair, either in whole or in part, of any
building, mill, bridge, ditch, flume, aqueduct, reservoir, tunnel, fence,
railroad, wagon road, tramway, or any other structure or improvement upon
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
land, including adjacent curb, gutter, and sidewalk, and also architects,
engineers, draftsmen, and artisans who have furnished designs, plans, plats,
maps, specifications, drawings, estimates of cost, surveys, or
superintendence, or who have rendered other professional or skilled service,
or bestowed labor in whole or in part, describing or illustrating, or
superintending such structure, or work done or to be done, or any part
connected therewith, shall have a lien upon the property upon which they
have furnished laborers or supplied machinery, tools, or equipment or
rendered service or bestowed labor or for which they have furnished
materials or mining or milling machinery or other fixtures, for the value,
WHETHER DISPUTED OR UNDISPUTED, of such laborers, machinery' tools, or
equipment supplied, or services rendered or labor done or laborers or
materials furnished, whether at the instance of the owner, or of any other
person acting by the owner's authority or under the owner, as agent,
contractor, or otherwise for the laborers, machinery, tools, or equipment
supplied, or work or labor done or services rendered or laborers or materials
furnished by each, respectively, whether supplied or done or furnished or
rendered at the instance of the owner of the building or other improvement,
or the owner's agent; and every contractor, architect, engineer,
subcontractor, builder, agent, or other person having charge of the
construction, alteration, addition to, or repair, either in whole or in part, of
said building or other improvement shall be held to be the agent of the
owner for the purposes of this article ARTICLE 22.
(7) NOTHING IN THIS ARTICLE 22 PROHIBITS THE INCLUSION OF COSTS
OTHERWISE ALLOWED UNDER A CONTRACT IN A LIEN, INCLUDING COSTS
INCURRED AS A RESULT OF DELAY, LOST PRODUCTIVITY, OR OTHER
DISRUPTION TO THE WORK.
SECTION 2. In Colorado Revised Statutes, 3 8-22-128, add (2) and
(3) as follows:
38-22-128. Excessive amounts claimed.
(2) AN A WARD BY A COURT HA YING JURISDICTION OF AN AMOUNT
THAT IS LESS THAN THE AMOUNT FOR WHICH A PERSON'S LIEN WAS FILED
DOES NOT RENDER THE AMOUNT EXCESSIVE FOR PURPOSES OF SUBSECTION
( 1) OF THIS SECTION IF THE PERSON HAD A GOOD FAITH BASIS TO BELIEVE THE
LIEN AMOUNT WAS DUE AT TIME OF FILING.
PAGE 2-SENATE BILL 26-074
(3) FOR PURPOSES OF THIS SECTION, AN AMOUNT IS "DUE" IF A
PERSON REASONABLY BELIEVES, IN GOOD FAITH, THAT THE AMOUNT
REPRESENTS THE VALUE OF THE LABOR, SERVICES, EQUIPMENT, OR OTHER
MATERIALS OR PERSONS FURNISHED OR SUPPLIED TO A CONTRACTOR, AS
DESCRIBED IN SECTION 38-22-101 (1), WHETHER OR NOT THE AMOUNT IS
UNLIQUIDATED OR DISPUTED.
SECTION 3. In Colorado Revised Statutes, 38-26-107, amend (1)
as follows:
38-26-107. Supplier may file statement - notice - withholding
funds.
(1) Any person, as defined in section 2-4-401 (8), C.R.S., that has
furnished labor, materials, EQUIPMENT, SERVICES, sustenance, or other
supplies used or consumed by a contractor or his e,r her THEIR subcontractor
in or about the performance of the work contracted to be done or that
supplies laborers, rental machinery, tools, or equipment to the extent used
in the prosecution of the work whose claim therefor has not been paid by
the contractor or the subcontractor may, at any time up to and including the
time of final settlement for the work contracted to be done, file with the
board, officer, person, or other contracting body by whom the contract was
awarded a verified statement of the amount due and unpaid on account of
the claim, WHETHER THE AMOUNT IS DISPUTED OR UNDISPUTED. NOTHING IN
THIS ARTICLE 26 PROHIBITS THE INCLUSION OF COSTS OTHERWISE ALLOWED
UNDER A CONTRACT IN A VERIFIED ST A TEMENT OF CLAIM, INCLUDING COSTS
INCURRED AS A RESULT OF DELAY, LOST PRODUCTIVITY, OR OTHER
DISRUPTION TO THE WORK. If the amount of the contract awarded to the
contractor exceeds one hundred fifty thousand dollars, the board, officer,
person, or other contracting body by whom the contract was awarded shall,
no later than ten days before the final settlement is made, publish a notice
of the final settlement at least twice in a newspaper of general circulation
in any county where the work was contracted for or performed or in an
electronic medium approved by the executive director of the department of
personnel. It is unlawful for any person to divide a public works contract
into two or more separate contracts for the sole purpose of evading or
attempting to evade the requirements of this subsection (1).
SECTION 4. In Colorado Revised Statutes, 3 8-26-110, amend ( 1)
introductory portion; and add (2) and (3) as follows:
PAGE 3-SENATE BILL 26-074
38-26-110. Excessive amounts claimed.
( 1) Any person who files a verified statement of a claim or asserts
a claim against a principal or surety that has furnished a bond under this
article ARTICLE 26 for an amount greater than the amount due without a
reasonable possibility that the amount claimed is due and with the
knowledge that the amount claimed is greater than the amount due, and that
fact is demonstrated in any proceedings under this article ARTICLE 26, shall
forfeit all rights to the amount claimed VERIFIED ST A TEMENT OF CLAIM and
shall be liable to the following in an amount equal to all costs and all
attorney fees reasonably incurred in bonding over, contesting, or otherwise
responding in any way to the excessive verified statement of claim or
excessive bond claim:
(2) AN A WARD BY A COURT HAVING JURISDICTION OF AN AMOUNT
THAT IS LESS THAN THE AMOUNT IN A PERSON'S VERIFIED STATEMENT OF
CLAIM DOES NOT RENDER THAT AMOUNT EXCESSIVE FOR PURPOSES OF
SUBSECTION ( 1) OF THIS SECTION IF THE PERSON HAD A GOOD FAITH BASIS TO
BELIEVE THE AMOUNT IN THE VERIFIED ST A TEMENT OF CLAIM WAS DUE AT
THE TIME OF FILING.
(3) FOR PURPOSES OF THIS SECTION, "AMOUNT DUE" MEANS THE
AMOUNT OF MONEY A PERSON REASONABLY BELIEVES, IN GOOD FAITH,
REPRESENTS THE VALUE OF THE LABOR, MATERIALS, SUSTENANCE, OTHER
SUPPLIES, LABORERS, RENTAL MACHINERY, TOOLS, OR EQUIPMENT,
FURNISHED OR SUPPLIED TO A CONTRACTOR, AS DEFINED IN SECTION
38-26-101, OR THEIR SUBCONTRACTOR, WHETHER OR NOT THE AMOUNT IS
UNLIQUIDATED OR DISPUTED, AS SET FORTH IN SECTION 38-26-107 (1).
SECTION 5. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly (August
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a
referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or part of this act within
such period, then the act, item, section, or part will not take effect unless
PAGE 4-SENATE BILL 26-074
approved by the people at the general election to be held in November 2026
and, in such case, will take effect on the date of the official declaration of
the vote thereon by the governor.
James Rashad Coleman, Sr.
PRESIDENT OF
THE SENATE
lier van Mourik
SECRETARY OF
THE SENATE
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
~ ~ Reilly
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
APPROVED on Y\'\c:1\'\d~--t 8 p ri l ~-t"' io'tvl o..\-\ r.OOowY\
(bate and Time)
ESTATE OF COLORADO
PAGE 5-SENATE BILL 26-074