Colorado Legal Update David Arkell, Partner Trip DeMuth, Partner Ben Petre, Associate
House Bill 14-1387 J. David Arkell
HB 14-1387 ► General update of capital-related statutes for state agencies and state higher education. ► Deals with, among other items, capital construction, controlled maintenance, project oversight and review, and lease and purchase of real estate by state agencies and state higher education. ► “Current practice shows that thresholds governing the procurement of various services associated with capital projects are too low and need to be modified.”
HB 14-1387 ► Amends threshold amounts used to determine when general contractors must provide payment and performance bonds on state and local construction projects.
HB 14-1387 ► Background: General contractors on state and local public construction projects must provide payment and performance bonds, under the Colorado Public Works Act (C.R.S. §38-26- 105 and -106) and the State Procurement Code (C.R.S. §24- 105-202).
HB 14-1387 ► Background: Colorado Public Works Act allows unpaid subcontractors to file a verified statement of claim (similar to a “stop notice” in other states), and requires the state or local agency to publish notice of final settlement (C.R.S. §38-26-107)
HB 14-1387 ► HB 1387 increases the threshold for contracts on which the state must require payment and performance bonds from $100,000 to $150,000. ► HB 1387 does not change the threshold for requiring payment and performance bonds by political subdivisions of the state ( e.g. , counties, special districts, and municipalities) (threshold remains at $50,000).
HB 14-1387 ► HB 1387 increases the threshold for requiring publication of notice of final settlement by the state or by political subdivisions of the state from $50,000 to $150,000. ► HB 1387 does not affect the ability of an unpaid subcontractor to file a verified statement of claim on a contract of any size for the state or political subdivisions of the state.
HB 14-1387 ► HB 1387 does not affect the Miller Act threshold for requiring payment and performance bonds on Federal contracts (remains at $100,000).
Developments in Colorado’s Construction Defect Law Ben Petre
Recent Developments in Colorado ► Legislative Update – Three bills aimed at changing the unfavorable climate within Colorado’s condo construction industry • Condos represent only 2 percent of the new housing market in metro Denver, versus 20% in other areas – SB 216 – Sought to provide state financial assistance to help builders meet the cost of insurance premiums for condos costing less than $500K • Builders report that insurance premiums for condos triple that of apartment units – SB 219 – Sought to create a multi-agency study on the condo issue – SB 220 – Sought to push more multi-family construction defect cases into arbitration; require full disclosure to homeowners; and require super majority of homeowners to approve a construction defect lawsuit ► Lakewood Ordinance 11
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