Colorado law requires private property owners to accept construction retainage bonds in lieu of withheld funds

Original title: Retainage Surety Bond Construction Contracts

Last action · May 7, 2026: Governor SignedSponsors: Michael Carter and 17 others

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Floor Vote

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What This Bill Does

Colorado law now allows contractors and subcontractors to submit a surety bond in place of withheld contract funds for private construction projects valued at $150,000 or more. Property owners and contractors are required to accept qualifying bonds and release the withheld retainage.

Why it matters

Construction contractors and subcontractors gain the ability to free up working capital on projects totaling $150,000 or more by substituting surety bonds for cash withholdings.

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

private property owners

Property owners must accept qualifying retainage bonds in lieu of withholding up to 5% of construction contract funds for projects of $150,000 or more.

Directly affected

contractors

Contractors gain the option to submit retainage bonds instead of having funds withheld, and may be required by subcontractors to provide bonds for their portion.

Directly affected

subcontractors

Subcontractors can require contractors to submit a bond in lieu of retainage for their portion of the funds.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

When can a contractor use a retainage bond instead of withheld cash?

A contractor can submit a in lieu of withholding on private construction contracts of at least $150,000, provided the bond meets statutory standards.

Can subcontractors request a bond in lieu of retainage?

Yes, a subcontractor may require the contractor to submit a bond in lieu of for the subcontractor's portion of the retainage.

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Where This Stands

Current status: Signed into law.

Procedural history

12 actions

May 7, 2026Office of the GovernorEnrolled
Governor Signed
Apr 28, 2026HouseFloor
Signed by the Speaker of the House
Apr 28, 2026SenateFloor
Signed by the President of the Senate
Apr 28, 2026Office of the GovernorEnrolled
Sent to the Governor
Apr 7, 2026SenateFloor
Senate Third Reading Passed - No Amendments
Apr 6, 2026SenateFloor
Senate Second Reading Passed - No Amendments

Show 6 earlier actions

Mar 31, 2026SenateCommittee
Senate Committee on Finance Refer Unamended to Senate Committee of the Whole
Mar 25, 2026SenateIntroduced
Introduced In Senate - Assigned to Finance
Mar 23, 2026HouseFloor
House Third Reading Passed - No Amendments
Mar 20, 2026House
House Second Reading Special Order - Passed with Amendments - Floor
Mar 18, 2026HouseCommittee
House Committee on Business Affairs & Labor Refer Unamended to House Committee of the Whole
Mar 2, 2026HouseIntroduced
Introduced In House - Assigned to Business Affairs & Labor

Version history

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