Retainage Surety Bond Construction Contracts
Summary
Colorado HB1311 passed both chambers, permitting contractors to provide a surety bond as an alternative to traditional retainage in construction contracts. The bill received bipartisan support with 55-9 House passage and unanimous 8-0 Senate Finance approval. This legislation affects construction firms entering contracts subject to Colorado state law.
What changed
Colorado enacted HB1311, allowing construction contractors to use surety bonds in lieu of traditional retainage (withheld contract funds). The bill passed the House (55-9) and Senate (8-0) during the 2026 Regular Session and was signed into law. The measure modifies how retainage works in construction agreements, enabling contractors to substitute bonds for cash withheld during project performance.
Construction firms operating under Colorado-registered contracts should review existing and future agreements for retainage provisions. Entities should coordinate with surety bond providers to establish bonding capacity sufficient to meet the new alternative. Legal teams should update contract templates to reflect the bond-in-lieu option, and project managers should understand when retainage versus surety bonds apply. Compliance officers should monitor the Colorado Secretary of State's official bill enactment date for determining when the new requirements take effect.
What to do next
- Review current construction contracts for retainage provisions and assess eligibility for bond substitution
- Coordinate with surety bond providers to establish or expand bonding capacity
- Update contract templates and procurement policies to reflect the bond-in-lieu option
- Monitor for the official effective date announcement from Colorado Secretary of State
Source document (simplified)
ChangeBridge / Colorado / HB1311 Passed HB1311 House Bill Passed 2026-03-25
Retainage Surety Bond Construction Contracts
Concerning the use of a bond in lieu of retainage in construction contracts.
Bill Details
State Colorado
Session 2026 Regular Session
Chamber House
Official Source leg.colorado.gov/bills/HB26-1311
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Sponsors
Michael Carter (Rep - D) Monica Duran (Rep - D) Scott Bright (Sen - R) Marc Snyder (Sen - D) Ryan Gonzalez (Rep - R) Brianna Titone (Rep - D)
Action History
2026-04-06 S Senate Second Reading Passed - No Amendments 2026-03-31 S Senate Committee on Finance Refer Unamended to Senate Committee of the Whole 2026-03-25 S Introduced In Senate - Assigned to Finance 2026-03-23 H House Third Reading Passed - No Amendments 2026-03-20 H House Second Reading Special Order - Passed with Amendments - Floor 2026-03-18 H House Committee on Business Affairs & Labor Refer Unamended to House Committee of the Whole 2026-03-02 H Introduced In House - Assigned to Business Affairs & Labor
Votes
2026-03-18 House Business Affairs & Labor: Refer House Bill 26-1311 to the Committee of the Whole. Yea: 11 Nay: 2 2026-03-23 House: Third Reading Bill Yea: 55 Nay: 9 2026-03-31 Senate Finance: Refer House Bill 26-1311 to the Committee of the Whole. Yea: 8 Nay: 0
Committee Referrals
2026-03-02 H Business Affairs and Labor 2026-03-25 S Finance
Amendments
2026-03-20 Second Reading Amendment L.002 Adopted
Bill Text Versions
1969-12-31 Introduced 1969-12-31 Engrossed 1969-12-31 Engrossed 1969-12-31 Amended
Subjects
Housing Labor & Employment Professions & Occupations Legislative data powered by LegiScan (CC BY 4.0)
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