Bill
HB 1311
Allows Colorado construction contractors to substitute surety bonds for retainage payments, improving cash flow while maintaining owner protections through alternative financial security mechanisms.
HB 1311 modifies Colorado's construction contract requirements by allowing contractors to use surety bonds as an alternative to traditional retainage (money withheld from payments). The bill appears designed to improve cash flow for construction companies by providing a financial security mechanism that substitutes for holding back portions of contract payments until project completion.
Retainage practices in construction can strain contractor finances, particularly for small and mid-sized firms that depend on consistent cash flow. This bill could increase construction industry liquidity while maintaining financial protections for project owners and subcontractors through bonding requirements. The outcome may affect construction project timelines, contractor competitiveness, and whether payment practices become more uniform across the state.
Compiled from official sources — confirm details with the bill’s official record.
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