Colo. Rev. Stat. » Title 38
Colorado Revised Statutes

Colo. Rev. Stat. § 38-26-105 (2026)

Public works contractor's bond - conditions - applicability - definitions

✓ current as of July 2026
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(1) Subject to subsection (2) of this section, any person, company, firm, or corporation entering into a contract for more than fifty thousand dollars with any county, municipality, or school district for the construction of any public building or the prosecution or completion of any public works or for repairs upon any public building or public works is required before commencing work to execute, in addition to all bonds that may be required of it, a penal bond with good and sufficient surety to be approved by the board or boards of county commissioners of the county or counties, the governing body or bodies of the municipality or municipalities, or the district school board or boards, conditioned that such contractor shall at all times promptly make payments of all amounts lawfully due to all persons supplying or furnishing such person or such person's subcontractors with labor, laborers, materials, rental machinery, tools, or equipment used or performed in the prosecution of the work provided for in such contract and that such contractor will indemnify and save harmless the county, municipality, or school district to the extent of any payments in connection with the carrying out of any such contract which the county or counties, municipality or municipalities, and school district or school districts may be required to make under the law. Subcontractors, materialmen, mechanics, suppliers of rental equipment, and others may have a right of action for amounts lawfully due them from the contractor or subcontractor directly against the principal and surety of such bond. Such action for laborers, materials, rental machinery, tools, or equipment furnished or labor rendered must be brought within six months after the completion of the work.

(2) Notwithstanding the monetary qualification provided in subsection (1) of this section, the state, or the governing body of any county, municipality, school district, or other political subdivision determining it to be in the best interest of this state, or any county, municipality, school district, or other political subdivision may require the execution of a penal bond for any contract of fifty thousand dollars or less.

(3) This section applies to all contracts for more than fifty thousand dollars awarded to a private entity for the construction of any public building or the prosecution or completion of any public works or for repairs upon any public building or public works that is situated or located on publicly owned property using any public or private money or public or private financing. Source: L. 15: p. 395, § 1. C.L. § 9514. CSA: C. 39, § 4. CRS 53: § 86-7-4. C.R.S. 1963: § 86-7-4. L. 75: Entire section amended, p. 821, § 17, effective July 18. L. 79: Entire section amended, p. 1392, § 1, effective May 25; entire section amended, p. 888, § 13, effective July 1. L. 81: Entire section amended, p. 1824, § 1, effective May 28. L. 85: (1) amended, p. 1201, § 1, effective May 10. L. 2000: (1) amended, p. 212, § 17, effective August 2. L. 2019: (1) amended and (3) added, (SB 19-138), ch. 117, p. 495, § 3, effective August 2.

Editor's note: Amendments to this section by House Bill 79-1146 and Senate Bill 79- 306 were harmonized.

Cross references: For the legislative declaration in SB 19-138, see section 1 of chapter 117, Session Laws of Colorado 2019.

Notes of Decisions
Cited in 13 cases, 1978–2009 · leading case: W. Metal Lath v. Acoustical & Constr. Supply, Inc., 851 P.2d 875 (Colo. 1993).
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W. Metal Lath v. Acoustical & Constr. Supply, Inc., 851 P.2d 875 (Colo. 1993). · cites it 18× “We suspended the Colorado Appellate Rules and ordered the parties to submit briefs on whether sections 38-26-105 to -107, 16A C.R.S. (1982 & 1992 Supp.”
Montezuma Plumbing & Heating, Inc. v. Hous. Auth. of Montezuma Cnty., 651 P.2d 426 (Colo. Ct. App. 1982). · cites it 7× “Pursuant to the contract between Colvet and the Housing Authority and the statutory requirements of the public works statutes, §§ 38-26-105 and 38-26-106, C.R.S.1973 (1981 Cum.”
Lovell Clay Prods. Co. v. STATEWIDE SUPPLY, 580 P.2d 1278 (Colo. Ct. App. 1978). · cites it 6× “By these latter claims, Lovell sought to recover on the public works contractor's bond pursuant to § 38-26-105, C.R.S.1973, or, alternatively, to recover on funds withheld from Northern by the District pursuant to § 38-26-107, C.”
Fountain Sand & Gravel v. Chilton Const. Co., 578 P.2d 664 (Colo. Ct. App. 1978). · cites it 7× “More than six months after the project was completed, Fountain brought this action against Chilton, as principal, and Balboa, as surety, to recover the cost of the materials and labor furnished.”
Pat's Constr. Serv., Inc. v. Ins. Co. of the West, 141 P.3d 885 (Colo. Ct. App. 2005). · cites it 15× “Specifically, Pat’s Construction argues that § 38-26-105, C.R.S. 2005, is not an exclusive remedy and that it can pursue claims under the common law and § 38-26-107, C.”
Bemas Constr., Inc. v. Dorland (In Re Dorland), 374 B.R. 765 (Bankr.D. Colo. 2007). · cites it 2× “Be-mas, as principal, and Travelers Casualty and Surety Company of America, as compensated surety, provided a payment bond, pursuant to Colo.Rev.Stat. § 38-26-105, for the benefit of unpaid subcontractors, and material and rental equipment suppliers for the Project.”
Brannan Sand & Gravel Co. v. Fed. Deposit Ins. Corp., 928 P.2d 1337 (Colo. Ct. App. 1996). · cites it 6× “Section 38-26-105, C.R.S. (1995 Cum.Supp.”
Denny Constr., Inc. v. City & Cnty. of Denver Ex Rel. Bd. of Water Commissioners, 199 P.3d 742 (Colo. 2009). “See §§ 38-26-105, -106, CRS. (2008). Without the requisite bonding capacity, a contractor cannot be awarded a public works contract.”
River Cement Co. v. Bangert Bros. Constr. Co., 852 F. Supp. 25 (D. Colo. 1994). · cites it 2× “River asserts claims against Bangert and National Union under C.R.S. §§ 38-26-105 and 38-26-107 and under surety and payment bonds issued by National Union, to recover amounts owed by CSI.”
Rocky Mountain Ass'n of Credit Mgmt. v. Marshall, 615 P.2d 68 (Colo. Ct. App. 1980). · cites it 2× “The trial court concluded that the six-month limitations provision of § 38-26-105, C.R.S.1973 barred the actions.”
CPS Distributors, Inc. v. Fed. Ins. Co., 685 P.2d 783 (Colo. Ct. App. 1984). · cites it 3× “Section 38-26-105, C.R.S. (1982 Repl.Vol.”
Rocky Mountain Ass'n v. Marshall, 615 P.2d 68 (Colo. Ct. App. 1980). · cites it 2× “The trial court concluded that the six-month limitations provision of § 38-26-105, C.R.S.1973 barred the actions.”
Show all 13 citing cases →
Colo. Rev. Stat. § 38-26-105(1): 2 cases
W. Metal Lath v. Acoustical & Constr. Supply, Inc., 851 P.2d 875 (Colo. 1993). “We suspended the Colorado Appellate Rules and ordered the parties to submit briefs on whether sections 38-26-105 to -107, 16A C.R.S. (1982 & 1992 Supp.”
Pat's Constr. Serv., Inc. v. Ins. Co. of the West, 141 P.3d 885 (Colo. Ct. App. 2005). “Specifically, Pat’s Construction argues that § 38-26-105, C.R.S. 2005, is not an exclusive remedy and that it can pursue claims under the common law and § 38-26-107, C.”
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