NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      HOUSE BILL 11-1115
      
      
      BY REPRESENTATIVE(S) Priola and Soper, Brown, Casso, Gardner B.,
      Kerr A., Liston, Looper, Peniston, Ramirez, Riesberg, Scott, Solano,
      Swalm, Swerdfeger, Szabo, Wilson, Barker, Conti, Fischer, Kefalas,
      Kerr J., Lee, Tyler, Vaad, Waller, Williams A., Gerou, Labuda, Todd;
      also SENATOR(S) Tochtrop, Cadman, Jahn, Kopp, Renfroe, Aguilar,
      Guzman, Heath, Johnston, Newell, Nicholson, Williams S.
      
      
      Concerning the payment of retainage in construction contracts
           involving public entities.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  Legislative declaration.  (1)  The general assembly
      hereby finds and declares that:
      
           (a)  The construction industry is a significant component of the
      state's economy;
      
           (b)  Cash flow is vital to the stability of the construction industry and
      its ability to create new jobs; and
      
           (c)  Public entities must ensure construction projects are completed
      in a timely manner, while releasing retained progress payments
      expeditiously to sustain contractor cash flow.
      
           SECTION 2.  24-91-103 (1) and (3), Colorado Revised Statutes, are
      amended to read:
      
           24-91-103.  Public entity - contracts - partial payments.  (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 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 ninety-five percent of the
      calculated value of any completed work. completed shall be paid until fifty
      percent of the work required by the contract has been performed. 
      Thereafter, the public entity shall pay any of the remaining installments
      without retaining additional funds if, in the opinion of the public entity,
      satisfactory progress is being made in the work.  The withheld percentage
      of the contract price of any such contracted work, improvement, or
      construction shall 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 all phases 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 such 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.
      
           (3)  The provisions of this section shall apply to contracts between
      contractors and subcontractors entered into on or after July 1, 1991.
      
           SECTION 3.  Act subject to petition - effective date -
      applicability.  (1)  This act shall take effect at 12:01 a.m. on the day
      following the expiration of the ninety-day period after final adjournment of
      the general assembly (August 10, 2011, if adjournment sine die is on May
      11, 2011); except that, if a referendum petition is filed pursuant to section
      1 (3) of article V of the state constitution against this act or an item, section,
      or part of this act within such period, then the act, item, section, or part shall
      not take effect unless approved by the people at the general election to be
      held in November 2012 and shall take effect on the date of the official
      declaration of the vote thereon by the governor.
      
           (2)  The provisions of this act shall apply to contracts created on or
      after the applicable effective date of this act.
      
      
      
      
      ________________________________________________________
      Frank McNulty                      Brandon C. Shaffer
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO