Colorado § 38-26-106 Contractor executes bond - applicability

Colorado Statutes

§ 38-26-106 — Contractor executes bond - applicability

Colorado·Title 38 Property -·Art. Contractor's Bonds and Lien on Funds

(1)Before entering upon the performance of any work included in the contract, a contractor shall duly execute, deliver to, and file with the board, officer, body, or person by whom the contract was awarded a good and sufficient bond or other acceptable surety approved by the contracting board, officer, body, or person, in a penal sum not less than one-half of the total amount payable under the terms of the contract; except that, for a public works contract having a total value of five hundred million dollars or more, a bond or other acceptable surety, including but not limited to a letter of credit, may be issued in a penal sum not less than one-half of the maximum amount payable under the terms of the contract in any calendar year in which the contract is performed. The contrac

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(1) Before entering
upon the performance of any work included in the contract, a contractor shall duly
execute, deliver to, and file with the board, officer, body, or person by whom the
contract was awarded a good and sufficient bond or other acceptable surety
approved by the contracting board, officer, body, or person, in a penal sum not less
than one-half of the total amount payable under the terms of the contract; except
that, for a public works contract having a total value of five hundred million dollars
or more, a bond or other acceptable surety, including but not limited to a letter of
credit, may be issued in a penal sum not less than one-half of the maximum amount
payable under the terms of the contract in any calendar year in which the contract
is performed. The contracting board, office, body, or person shall ensure that the
contract requires that a bond or other acceptable surety, including but not limited
to a letter of credit, be filed and current for the duration of the contract.

(2) A bond or other acceptable surety shall be duly executed by a qualified
corporate surety or other qualified financial institution, conditioned upon the
faithful performance of the contract, and, in addition, shall provide that, if the
contractor or his or her subcontractor fails to duly pay for any labor, materials,
team hire, sustenance, provisions, provender, or other supplies used or consumed
by such contractor or his or her subcontractor in performance of the work
contracted to be done or fails to pay any person who supplies laborers, rental
machinery, tools, or equipment, all amounts due as the result of the use of such
laborers, machinery, tools, or equipment, in the prosecution of the work, the surety
or other qualified financial institution will pay the same in an amount not exceeding
the sum specified in the bond or other acceptable surety together with interest at
the rate of eight percent per annum. Unless a bond or other acceptable surety is
executed, delivered, and filed, no claim in favor of the contractor arising under the
contract shall be audited, allowed, or paid. A certified or cashier's check or a bank
money order made payable to the treasurer of the state of Colorado or to the
treasurer or other officer designated by the governing body of the contracting local
government may be accepted in lieu of a bond or other acceptable surety.

(3) This section applies to:

(a) A contractor who is awarded a contract for more than fifty thousand
dollars for the construction, erection, repair, maintenance, or improvement of any
building, road, bridge, viaduct, tunnel, excavation, or other public works for any
county, city and county, municipality, school district, or other political subdivision of
the state;

(b) A contractor who is awarded a contract for more than one hundred fifty
thousand dollars for the construction, erection, repair, maintenance, or
improvement of any building, road, bridge, viaduct, tunnel, excavation, or other
public works for this state; and

(c) All contracts for more than one hundred fifty thousand dollars awarded
by any county, city and county, municipality, school district, or other political
subdivision of the state to a private entity for the construction, erection, repair,
maintenance, or improvement of any building, road, bridge, viaduct, tunnel,
excavation, or other public works that is situated or located on publicly owned
property using any public or private money or public or private financing.

Colorado § 38-26-106 (Contractor executes bond - applicability) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Source: L. 23: p. 480, � 2. CSA: C. 39, � 6. CRS 53: � 86-7-6. C.R.S. 1963: � 86-7-6. L. 75: (1) amended, p. 1427, � 1, effective June 13. L. 77: Entire section amended, p. 1712, � 1, effective June 3. L. 81: (1) amended, p. 1825, � 2, effective May 28. L. 85: (2) amended, p. 1202, � 2, effective May 10. L. 2000: (2) amended, p. 213, � 18, effective August 2. L. 2004: (1) amended p. 228, � 4, effective August 4. L. 2009: Entire section amended, (SB 09-248), ch. 270, p. 1225, � 1, effective August 5. L. 2014: (1) amended, (HB 14-1387), ch. 378, p. 1853, � 65, effective June 6. L. 2019: (1) amended and (3) added, (SB 19-138), ch. 117, p. 495, � 4, effective August 2.