CO SB138

Extends bonding requirements to construction contracts awarded to private entities for work on publicly owned property using any public or private financing, closing a gap in current law that only requires bonds for traditional public construction projects.

Applies to contracts exceeding $50,000 for counties, municipalities, and school districts, and exceeding $150,000 for state contracts, ensuring subcontractors and material suppliers have payment protection on public-private partnership projects.

Requires contractors to execute performance and payment bonds with surety approved by the contracting authority, with bond amounts at least one-half of the total contract value (or one-half of maximum annual payment for contracts valued at $500 million or more).

Allows subcontractors, material suppliers, mechanics, and equipment suppliers to bring legal action against the bond within six months of work completion to recover amounts lawfully due them.

Takes effect August 2, 2019, unless a referendum petition is filed, in which case the law becomes effective only upon voter approval at the November 2020 general election.