Colorado Bill SB26-074: Clarifies Construction Bond Claim Penalty

Detected March 14th, 2026

Summary

Colorado bill SB26-074 proposes to clarify the penalty for contractors who knowingly file excessive claims on public construction performance bonds. The bill aims to align the penalties for public and private construction contractors regarding excessive bond or lien claims.

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What changed

Colorado bill SB26-074, currently in its 2026 Regular Session, seeks to amend existing statutes concerning penalties for excessive claims on public construction performance bonds. The bill clarifies that a contractor who knowingly files a verified statement of claim (VSOC) or asserts a bond claim for an excessive amount on a public project will forfeit all rights to recover the claimed amount under public construction bond and lien laws. This provision is intended to align the penalty structure with that for private construction contractors, where knowingly filing an excessive mechanic's lien results in forfeiture of lien rights and liability for costs and attorney fees.

This legislative change, if enacted, will impact contractors working on public construction projects in Colorado. Compliance officers should monitor the bill's progress through the legislative process. While no specific compliance deadline is yet established, the bill's intent is to clarify existing penalties, suggesting that adherence to accurate claim amounts is paramount. The primary consequence for non-compliance, as clarified by the bill, is the forfeiture of rights to recover the excessive amount claimed, in addition to potential liability for costs and attorney fees.

What to do next

Monitor the progress of Colorado bill SB26-074 through the legislative process.
Review internal policies and procedures related to the filing of claims on public construction performance bonds to ensure accuracy and compliance with potential new statutory clarifications.

Penalties

Forfeiture of all rights to recover the excessive amount claimed under public construction project bonds and liens; liability for costs and attorney fees.

Source document (simplified)

SB26-074

Clarify Excessive Public Construction Bond Claim Penalty

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Fiscal Policy & Taxes |
Concerning clarification of the penalty for claiming an excessive amount in a public construction performance bond dispute.

Recent Bill (PDF) Recent Fiscal Note (PDF) 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 only 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 (VSOC), which requires the project owner to withhold funds sufficient to pay the claim, usually in the form of a bond. The bill clarifies that a public construction contractor who knowingly files a VSOC or asserts a bond claim for an excessive amount forfeits all rights only pursuant to the laws for public construction project bonds and liens to recover the amount claimed. Thus, the bill aligns, for both a private and public construction contractor, the penalty for claiming an excessive amount on a lien or bond to the loss of all statutory rights related to that lien or bond, respectively. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Prime Sponsors

Senator

John Carson
Senator

Marc Snyder
Representative

Sean Camacho

Committees

Senate

Judiciary

House

Judiciary

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Status

Under Consideration

Introduced

Under Consideration

Upcoming Schedule

1 meeting

Mon

Mar 16

House General Orders - Second Reading of Bills

10:00 AM House Chamber

Related Documents & Information

| Date | Version | Documents |
| --- | --- | --- |
| 02/17/2026 | Reengrossed | PDF |
| 02/12/2026 | Engrossed | PDF |
| 01/28/2026 | Introduced | PDF |

| Date | Version | Documents |
| --- | --- | --- |
| 03/11/2026 | PA1 | PDF |

| Date | Version | Documents |
| --- | --- | --- |
| 02/02/2026 | Initial Fiscal Note | PDF |

| Activity | Vote | Documents |
| --- | --- | --- |
| Refer Senate Bill 26-074, as amended, to the Committee of the Whole. | The motion passed on a vote of 10-0. | Vote summary |
Committee Report: PDF
| Activity | Vote | Documents |
| --- | --- | --- |
| Refer Senate Bill 26-074 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar. | The motion passed on a vote of 7-0. | Vote summary |
Hearing Summary | Committee Report: PDF
| Date | Calendar | Motion | Vote | Vote Document |
| --- | --- | --- | --- | --- |
| 02/17/2026 | Third Reading | BILL | 30 AYE 0 NO 4 OTHER | Vote record |

| Date | Amendment Number | Committee/ Floor Hearing | Status | Documents |
| --- | --- | --- | --- | --- |
| 03/10/2026 | L.004 | HOU Judiciary | Passed [] | PDF |
| 03/10/2026 | L.006 | HOU Judiciary | Passed [] | PDF |
| 03/10/2026 | L.005 | HOU Judiciary | Passed [] | PDF |
| 03/10/2026 | L.001 | HOU Judiciary | Passed [] | PDF |
* Amendments passed in committee are not incorporated into the measure unless adopted by the full House or Senate.

** The status of Second Reading amendments may be subsequently affected by the adoption of an amendment to the Committee of the Whole Report. Refer to the House or Senate Journal for additional information.

| Date | Location | Action |
| --- | --- | --- |
| 03/13/2026 | House | House Second Reading Laid Over Daily - No Amendments |
| 03/10/2026 | House | House Committee on Judiciary Refer Amended to House Committee of the Whole |
| 02/18/2026 | House | Introduced In House - Assigned to Judiciary |
| 02/17/2026 | Senate | Senate Third Reading Passed - No Amendments |
| 02/13/2026 | Senate | Senate Third Reading Laid Over to 02/17/2026 - No Amendments |
| 02/12/2026 | Senate | Senate Second Reading Passed - No Amendments |
| 02/09/2026 | Senate | Senate Committee on Judiciary Refer Unamended - Consent Calendar to Senate Committee of the Whole |
| 01/28/2026 | Senate | Introduced In Senate - Assigned to Judiciary |
Prime Sponsor

Sen. J. Carson | Sen. M. Snyder

Rep. S. Camacho

Sponsor

(None) Co-Sponsor

Sen. L. Liston | Sen. R. Pelton