HB 1311: Retainage Surety Bond Construction Contracts - Colorado

Final Act → Signed Act · 4 edits · May 7, 2026

MODERATE

This bill updates the definitions and requirements for using bonds instead of withholding money (retainage) on private construction projects. It clarifies that a 'like bond' from a subcontractor is equivalent to one from a contractor and ensures that if a bond is provided, the owner must release the withheld funds. The changes also adjust formatting and numbering in existing statutes to reflect these new rules.

Scope change

The bill applies to private construction contracts but explicitly clarifies that the exemption for public entities includes public-private partnerships.

DEFINITION

Added a new definition for 'like bond' to establish that a subcontractor's bond is legally equivalent to a contractor's bond.

REQUIREMENT

Modified the requirement that property owners must accept and release retainage when a valid bond is tendered.

SCOPE

Clarified that the exemption for public entities now explicitly includes contracts resulting from public-private partnerships.

TECHNICAL

Corrected formatting, numbering, and spacing errors in the statutory text to ensure clarity and consistency.

Rerevised → Final Act · 6 edits · Apr 24, 2026

MODERATE

This bill establishes a legal framework allowing contractors and subcontractors to use a surety bond instead of cash retainage on construction projects. It creates new definitions for 'like bonds' and 'retainage bonds' to ensure consistency across the industry. The law mandates that property owners must accept these bonds if they meet specific financial and performance standards, while also requiring contractors to accept similar bonds from their subcontractors. The legislation includes exemptions for public projects and public-private partnerships.

Scope change

The bill applies to private construction contracts created on or after the effective date, explicitly excluding contracts involving property owned by public entities or public-private partnerships.

DEFINITION

Added new definitions for 'like bond' and 'retainage bond' to clarify the legal requirements for substitute financial instruments.

REQUIREMENT

Mandated that property owners, contractors, and subcontractors must accept a valid retainage bond in lieu of withholding cash retainage, provided the bond meets specific criteria.

Required contractors to accept 'like bonds' from subcontractors if the property owner has accepted a bond from the contractor.

Established specific conditions for the surety bond, including performance guarantees, payment of laborers and suppliers, and minimum financial strength ratings for the insurance company.

ELIGIBILITY

Created an exemption for public projects and public-private partnerships, meaning the bond-in-lieu-of-retainage option does not apply to government-owned properties.

TIMELINE

Set the effective date for the act to begin on August 12, 2026, unless a referendum petition is filed and approved by voters.

Revised → Rerevised · 2 edits · Apr 7, 2026

MINOR

The bill text was updated from a 'Revised' status to a 'Rerevised' status, indicating that additional amendments were adopted in the Senate. The primary substantive change is the addition of seven new co-sponsors to the Senate sponsorship list, expanding the legislative support for the bill. No changes were made to the bill's scope, funding, definitions, or policy requirements.

TECHNICAL

Added seven new names to the Senate sponsorship list, expanding the list of legislators supporting the bill.

Updated the document header to reflect 'REREVISED' status and included a new date stamp for the 3rd Reading Unamended.

Reengrossed → Revised · 3 edits · Apr 6, 2026

MINOR

The bill was updated from its 'Reengrossed' version to a 'Revised' version, indicating it has passed the second house of the legislature. The primary substantive change is the addition of the Senate Finance Committee to the list of committees reviewing the bill, while the House committees remain the same. Additionally, the bill summary was updated to reflect that it has passed the third reading in the House, and the effective date was confirmed as August 12, 2026, contingent on the general assembly's adjournment.

Scope change

The bill's scope regarding the use of bonds in lieu of retainage for public-private partnership contracts remains unchanged; however, the legislative process status has advanced to include Senate approval.

TECHNICAL

Added the Senate Finance Committee to the list of committees reviewing the bill.

Changed the header status from 'Reengrossed' to 'Revised' to indicate the bill has been amended in the second house.

TIMELINE

Updated the bill summary to reflect that the bill has passed the third reading in the House and is now awaiting Senate action.

Engrossed → Reengrossed · 3 edits · Mar 23, 2026

MINOR

The bill status was updated from 'Engrossed' to 'Reengrossed' to reflect that it now includes all amendments adopted during the House of Introduction. A new date stamp of March 23, 2026, was added to the bill summary, and the Senate sponsorship list was updated to include a new sponsor, Gonzalez R., Titone.

TECHNICAL

The bill title was changed from 'Engrossed' to 'Reengrossed' to accurately reflect the inclusion of amendments made in the House of Introduction.

A specific date stamp (March 23, 2026) and a '3rd Reading Unamended' label were added to the bill summary section.

The Senate sponsorship list was updated to add Gonzalez R., Titone as a co-sponsor alongside the existing sponsors.

Introduced → Engrossed · 2 edits · Mar 20, 2026

MINOR

The bill was amended to explicitly exempt contracts involving public entities and public-private partnerships from the new retainage rules. This change clarifies that the requirement for contractors to submit bonds in lieu of withholding retainage does not apply to government-owned properties or partnerships.

Scope change

The bill's scope was narrowed by adding a specific exemption for public entities and public-private partnerships.

SCOPE

Added a new subsection stating that the bond-in-lieu-of-retainage requirements do not apply to contracts or subcontracts concerning property owned by a public entity.

Clarified that the exemption for public entities also includes contracts resulting from public-private partnerships.

Retainage Surety Bond Construction Contracts

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