Colorado

For Colorado, payment bond threshold is Any contract for more than $50,000 with any county, municipality, or school district for the construction of any public building or the prosecution or completion of any public works or for repairs upon any public building or public works. Any contract for more than $100,000 for the construction of any public work for the State of Colorado; bond amount is not less than one-half of the total amount payable under the terms of the contract; claim deadline is Within six months after the completion of the public work; preliminary notice required is may file, with the official awarding the contract, a verified statement of the amount due and unpaid; statutory citation is §§38-26-102, 38-26-105, 38-26-106, C.R.S, verified against its source on 2026-08-17.

Values marked our reading are our classification of what the source says — the source does not print them in those words. The quote below is the evidence for each one; judge it yourself.

What the source says

COLORADO Types of Projects: Any railroad, reservoir, or irrigating canal company contracting for the construction of its railroad, reservoir, or irrigating canal, or any part thereof. Any contract for more than $50,000 with any county, municipality, or school district for the construction of any public building or the prosecution or completion of any public works or for repairs upon any public building or public works. Any contract for more than $100,000 for the construction of any public work for the State of Colorado. (§§38-26-102, 38-26-105, 38-26-106, C.R.S.). Labor and Material Covered: Railroad, reservoir, or irrigating canal company. All laborers, mechanics, materialmen, ranchmen, farmers, merchants and other persons who supply such contractor, or any of his or her subcontractors, with labor, work, laborers, materials, ranch or farm products, provisions, goods, or supplies of any kind all just debts incurred therefor in carrying on such work. (§38-26-102, C.R.S.). Public works. All labor, laborers, materials, rental machinery, tools or equipment used or performed in the prosecution of the work. Second tier material suppliers (material suppliers to a material supplier) do not have protection under the Colorado Contractor’s Bonds and Lien on Funds Article 26. And all labor, materials, team hire, sustenance, provisions, provender or other supplies used or consumed by contractor or his subcontractor in or about the performance of the public work. (§§38-26-105, 38-26-106, C.R.S.). Verified Claim and Withholding of Payments: If a claimant has not been paid, the claimant can deliver a notice called a “verified statement of the amount due and unpaid on account of the claim” to the railroad, reservoir, or irrigation canal or their agents or to the any county, municipality, or school district or the state. The party served must then withhold payments from the contractor in a sufficient amount to assure payment of the claimant. (§38-26-103, 38-26-107, C.R.S.). Notice Required for Public Projects: Persons furnishing labor or material to a contractor or subcontractor, at any time up to and including the time of final settlement for the work contracted to be done, which final settlement shall be duly advertised at least 10 days prior thereto in the county or counties where the work was contracted for and wherein such work was performed, may file, with the official awarding the contract, a verified statement of the amount due and unpaid, whereupon such official shall withhold payments from contractor sufficient to ensure the payment of such claim, until the same has been paid or the claim has been properly withdrawn. However, such funds shall not be withheld longer than 90 days following the date fixed for final settlement, unless an action is commenced within that time to enforce such unpaid claim and notice thereof is filed with the public body that awarded the contract. (§38-26-107, C.R.S.). Contractor’s Bond: A penal bond in a sum of “not less than one-half of the total amount payable under the terms of the contract” with a “good and sufficient surety” must be provided stating that “such contractor shall at all times promptly make payments of all amounts lawfully due to all persons supplying or furnishing such person or such person’s subcontractors with labor, laborers, materials, rental machinery, tools, or equipment used or performed in the prosecution of the work.” Claimants on the bond who are unpaid have a direct right of action on the bond if they timely file suit on the bond. (§§38-26-105, 38-26-106, C.R.S.). Time for Suit on Verified Statement of Claim and Bond: Suit must be commenced on the verified statement of claim and on the bond within 90 days of the date set for final settlement. (§38-26-107, C.R.S.). Time for Suit on Bond: Within six months after the completion of the public work, or the time limitation set forth in the bond if greater than six months after completion of the project. (§38-26-106, C.R.S.). Penalty for Failure to Take Bond: Unless such bond is executed, delivered and filed, no claim in favor of the contractor arising under such contract shall be audited, allowed or paid. Contracts Excluded: Under $50,000. Special Provisions: Notwithstanding the monetary qualification, the governing body of any county, city, town or school district determining it to be in the best interest of the county, city, town or school district may require the execution of a penal bond for any contract of $50,000 or less. Trust Funds: All funds disbursed to any contractor or subcontractor shall be held in trust for payment of any person that has furnished labor, materials, sustenance, or other supplies used or consumed by the contractor in or about the performance of the work contracted to be done or that supplies laborers, rental machinery, tools, or equipment. Any person who violates the provisions of the trust fund statute commits theft. (§§38-26-109; §18-4-401, C.R.S.). Violation of the trust fund statute may result in a treble damages award against the party violating the statute under §18-4-405, C.R.S. Under Colorado case law, the principals of a company who have violated the trust fund statute may be found to be personally liable for the violation, including treble damages. ( Alexander Company v. Packard, 754 P.2d 780 (Colo. App. 1988)). Excessive Amounts Claimed: Any person who files a verified statement of claim or asserts a claim against a principal or surety that has furnished a bond for an amount greater than the amount due without a reasonable possibility that the amount claimed is due and with the knowledge that the amount claimed is greater than the amount due, and that fact is demonstrated in a proceeding under the statute, shall forfeit all rights to the amount claimed and shall be liable for all costs and attorneys’ fees reasonably incurred by the one contesting the claim. (§38-26-110, C.R.S.). Statutory Citation: Colorado Revised Statutes, Title 38, Article 26, §§38-26-101 to 38-26-110; Title 18, Article 4, Part 4, §§18-4-401, 18-4-405.

— fullertonlaw.com, retrieved 2026-08-17

Source

• fullertonlaw.comhttps://fullertonlaw.com/50-state-summary-payment-bond-law

Last verified against source: 2026-08-17. Due for re-check by 2027-08-17. This page as Markdown · OKF bundle · full dataset as JSON.