Bill

Bill > SB074


CO SB074

CO SB074
Clarify Excessive Public Construction Bond Claim Penalty


summary

Introduced
01/28/2026
In Committee
02/18/2026
Crossed Over
02/18/2026
Passed
Dead

Introduced Session

2026 Regular Session

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.

AI Summary

This bill clarifies the penalties for contractors on public construction projects who knowingly file a verified statement of claim (VSOC) or assert a bond claim for an amount greater than what is actually owed. A VSOC is a formal claim filed by a contractor to secure payment on a public project, often involving a bond, which is a financial guarantee. Currently, if a contractor on a private project files an excessive lien, they lose their lien rights and may have to pay costs and attorney fees. This bill ensures that a public contractor who makes an excessive claim, knowing it's too high, will similarly forfeit all their legal rights to recover that specific excessive amount under the laws governing public construction project bonds and liens, aligning the consequences for both private and public contractors.

Committee Categories

Justice

Sponsors (5)

Last Action

House Judiciary Hearing (00:00:00 3/10/2026 Room 0107) (on 03/10/2026)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...