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Clarify Excessive Pub Constr Bond Claim Penalty

Concerning clarification of the penalty for claiming an excessive amount in a public construction performance bond dispute.

SB26-074 2026 Regular Session Signed into Law Fiscal Policy & Taxes

Cost estimates

At the first note read
$0
FACT February 2, 2026
At the last note read
$0
FACT June 3, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

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The appropriation field, read from the note: No appropriation is required.

Bill summary

     Currently, a contractor on a private construction project has a statutory right to secure payment with a general mechanic's lien. However, if the contractor knowingly files on the lien for an excessive amount, the contractor forfeits all rights to the lien and is liable to the person against whom the lien was filed for costs and attorney fees. A contractor on a public construction project has a similar right to secure payment by filing a verified statement of claim, which requires the project owner to withhold funds sufficient to pay the claim, usually in the form of a bond. The act clarifies that a public construction contractor who knowingly files a verified statement of claim for an excessive amount forfeits all rights pursuant to the verified statement of claim. Thus, the act aligns, for both a private and public construction contractor, the penalty for claiming an excessive amount on a lien or verified statement of claim to the loss of rights related to that lien or verified statement of claim, respectively.

     The act expressly allows for a private mechanic's lien or public verified statement of claim to include costs otherwise allowed under a contract in the lien or verified statement of claim amount, including costs incurred as a result of delay, lost productivity, or other disruption to the work. The act also clarifies that an award by a court for an amount less than the amount claimed in a lien or verified statement of claim does not render the amount claimed excessive.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)