(1) When a construction contract is awarded in excess of one hundred fifty thousand dollars, the following bonds or security shall be delivered to the state and shall become binding on the parties upon the execution of the contract:
A performance bond satisfactory to the state, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the state, in an amount equal to fifty percent of the price specified in the contract; and
A payment bond satisfactory to the state, executed by a surety company authorized todo business in this state or otherwise secured in a manner satisfactory to the state, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to fifty percent of the price specified in the contract.
Nothing in this section shall be construed to limit the authority of the state to requirea performance bond or other security in addition to those bonds or in circumstances other than those specified in subsection (1) of this section.
Suits on payment bonds and labor and payment bonds shall be brought in accordancewith sections 38-26-105 to 38-26-107, C.R.S.
This section applies to all construction contracts awarded to a private entity for construction that is situated or located on publicly owned property using any public or private money or public or private financing.
Source: L. 81: Entire article added, p. 1273, § 1, effective January 1, 1982. L. 2004: IP(1) amended, p. 228, § 3, effective August 4. L. 2014: IP(1) amended, (HB 14-1387), ch. 378,
p. 1852, § 64, effective June 6. L. 2019: (4) added, (SB 19-138), ch. 117, p. 494, § 2, effective August 2.
Cross references: (1) For the legislative declaration in HB 14-1387, see section 1 of chapter 378, Session Laws of Colorado 2014.
For the legislative declaration in SB 19-138, see section 1 of chapter 117, SessionLaws of Colorado 2019.