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CO HB1311

Bill

Status

Introduced

3/2/2026

Primary Sponsor

Michael Carter

Click for details

Origin

House of Representatives

2026 Regular Session

AI Summary

  • Contractors and subcontractors may submit a surety bond (not exceeding 5% of money earned) in lieu of having retainage withheld from construction contract payments
  • Property owners and contractors must accept compliant retainage bonds and release the corresponding retainage funds
  • Retainage bonds must be issued by Colorado-licensed insurers; property owners may require a minimum A.M. Best financial strength rating up to "A-"
  • When a property owner accepts a bond from a contractor, the contractor must accept equivalent ("like") bonds from subcontractors seeking retainage release
  • Retainage bonds and their proceeds are subject to claims and liens with the same priority as existing mechanic's lien laws; applies to contracts created on or after August 12, 2026

Legislative Description

Retainage Surety Bond Construction Contracts

Labor & Employment

Last Action

Introduced In House - Assigned to Business Affairs & Labor

3/2/2026

Committee Referrals

Business Affairs and Labor3/2/2026

Full Bill Text

No bill text available