§ 24-91-103 — Public entity - contracts - partial payments

Colorado § 24-91-103

• Jurisdiction: Colorado
• Title 24: Government
• Art.: Construction Contracts with Public Entities

Text

(1) (a) A public
entity awarding a contract exceeding one hundred fifty thousand dollars for the
construction, alteration, or repair of any highway, public building, public work, or
public improvement, structure, or system, including real property as defined in
section 24-30-1301 (15), shall authorize partial payments of the amount due under
such contract at the end of each calendar month, or as soon thereafter as
practicable, to the contractor, if the contractor is satisfactorily performing the
contract. The public entity shall pay at least ninety-five percent of the calculated
value of completed work. The withheld percentage of the contract price of any
contracted work, improvement, or construction may be retained until the contract is
completed satisfactorily and finally accepted by the public entity.

(b) The public entity shall make a final settlement in accordance with section
38-26-107, C.R.S., within sixty days after the contract is completed satisfactorily
and finally accepted by the public entity.

(c) If the public entity finds that satisfactory progress is being made in any
phase of the contract, it may, upon written request by the contractor, authorize final
payment from the withheld percentage to the contractor or subcontractors who
have completed their work in a manner finally acceptable to the public entity.
Before the payment is made, the public entity shall determine that satisfactory and
substantial reasons exist for the payment and shall require written approval from
any surety furnishing bonds for the contract work.

(2) Whenever a contractor receives payment pursuant to this section, the
contractor shall make payments to each of his subcontractors of any amounts
actually received which were included in the contractor's request for payment to
the public entity for such subcontracts. The contractor shall make such payments
within seven calendar days of receipt of payment from the public entity in the same
manner as the public entity is required to pay the contractor under this section if
the subcontractor is satisfactorily performing under his contract with the
contractor. The subcontractor shall pay all suppliers, sub-subcontractors, laborers,
and any other persons who provide goods, materials, labor, or equipment to the
subcontractor any amounts actually received which were included in the
subcontractor's request for payment to the contractor for such persons, in the
same manner set forth in this subsection (2) regarding payments by the contractor
to the subcontractor. If the subcontractor fails to make such payments in the
required manner, the subcontractor shall pay said suppliers, sub-subcontractors,
and laborers interest in the same manner set forth in this subsection (2) regarding
payments by the contractor to the subcontractor. At the time the subcontractor
submits a request for payment to the contractor, the subcontractor shall also
submit to the contractor a list of the subcontractor's suppliers, sub-subcontractors,
and laborers. The contractor shall be relieved of the requirements of this
subsection (2) regarding payment in seven days and interest payment until the
subcontractor submits such list. If the contractor fails to make timely payments to
the subcontractor as required by this section, the contractor shall pay the
subcontractor interest as specified by contract or at the rate of fifteen percent per
annum whichever is higher, on the amount of the payment which was not made in a
timely manner. The interest shall accrue for the period from the required payment
date to the date on which payment is made. Nothing in this subsection (2) shall be
construed to affect the retention provisions of any contract.

(3) (Deleted by amendment, L. 2011, (HB 11-1115), ch. 211, p. 912, � 2, effective
August 10, 2011.)

Legislative History

Source: L. 79: Entire article added, p. 996, � 1, effective July 1. L. 91: Entire section amended, p. 904, � 1, effective July 1. L. 2004: (1) amended, p. 227, � 1, effective August 4. L. 2011: (1) and (3) amended, (HB 11-1115), ch. 211, p. 912, � 2, effective August 10. L. 2014: (1)(a) amended, (HB 14-1387), ch. 378, p. 1851, � 58, effective June 6.