Construction Contracts

C.R.S. tit. 24, art. 105

in effect

C.R.S. § 24-105-101 Responsibility for selection of methods of construction contracting management

24-105-101. Responsibility for selection of methods of construction contracting management. The executive director may promulgate rules providing for as many alternative methods of construction contracting management as he or she may determine to be feasible. These rules may set forth criteria to be used in determining which method of construction contracting management is to be used for a particular project, grant to the head of a division within the department or the procurement official who is responsible for carrying out the construction project the discretion to select the appropriate method of construction contracting management for a particular project, and require the procurement agent to execute and include in the contract file a written statement setting forth the facts which led to the selection of a particular method of construction contracting management for each project.

C.R.S. § 24-105-102 Performance evaluation reports - definitions

24-105-102. Performance evaluation reports - definitions. (Repealed)

C.R.S. § 24-105-201 Bid security

24-105-201. Bid security. (1) Bid security shall be required for all invitations for bids for construction contracts when the price is estimated by the procurement agent to exceed fifty thousand dollars. Bid security shall be a bond provided by a surety company authorized to do business in this state, the equivalent in cash, or otherwise supplied in a form satisfactory to the state. Nothing in this subsection (1) prevents the requirement of such bonds on construction contracts under fifty thousand dollars. (2) Bid security shall be in an amount equal to at least five percent of the amount of the bid. (3) When the invitation for bids requires security, noncompliance requires that the bid be rejected as nonresponsive. (4) After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids, except as provided in section 24-103-202 (6). If a bidder is permitted to withdraw his bid before award, no action shall be had against the bidder or the bid security.

C.R.S. § 24-105-202 Contract performance and payment bonds - applicability

24-105-202. Contract performance and payment bonds - applicability. (1) When a construction contract is awarded in excess of one hundred fifty thousand dollars, the following bonds or security shall be delivered to the state and shall become binding on the parties upon the execution of the contract: (a) A performance bond satisfactory to the state, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the state, in an amount equal to fifty percent of the price specified in the contract; and (b) A payment bond satisfactory to the state, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the state, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to fifty percent of the price specified in the contract. (2) Nothing in this section shall be construed to limit the authority of the state to require a performance bond or other security in addition to those bonds or in circumstances other than those specified in subsection (1) of this section. (3) Suits on payment bonds and labor and payment bonds shall be brought in accordance with sections 38-26-105 to 38-26-107, C.R.S. (4) This section applies to all construction contracts awarded to a private entity for construction that is situated or located on publicly owned property using any public or private money or public or private financing.

C.R.S. § 24-105-203 Bond forms and copies

24-105-203. Bond forms and copies. (1) The form of bonds required by this part 2 shall be as provided in sections 38-26-105 to 38-26-107, C.R.S. (2) Any person may request and obtain from the state a certified copy of a bond upon payment of the cost of reproduction of the bond and postage, if any. A certified copy of a bond shall be prima facie evidence of the contents, execution, and delivery of the original.

C.R.S. § 24-105-301 Contract clauses and their administration

24-105-301. Contract clauses and their administration. (1) The executive director may promulgate rules requiring the inclusion in state construction contracts of clauses providing for adjustments in prices, time of performance, and other appropriate contract provisions affected by and covering the following subjects: (a) The unilateral right of the state to order in writing changes in the work within the scope of the contract and changes in the time of performance of the contract that do not alter the scope of the contract work; (b) Variations occurring between estimated quantities of work on a contract and actual quantities; (c) Suspension of work ordered by the state; and (d) Site conditions differing from those indicated in the contract or ordinarily encountered; except that differing site condition clauses required by the rules need not be included in a contract when the contract is negotiated or when the contractor provides the site or design. (2) (a) Adjustments in price shall be computed in one or more of the following ways: (I) By agreement on a fixed price adjustment before commencement of the pertinent performance or as soon thereafter as practicable; (II) By unit prices specified in the contract or subsequently agreed upon; (III) By the costs attributable to the events or situations under such clauses with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon; (IV) In such other manner as the contracting parties may mutually agree; or (V) In the absence of agreement by the parties, by a unilateral determination by the state of the costs attributable to the events or situations under such clauses with adjustment of profit or fee, all as computed by the state pursuant to the applicable sections of any rules issued under section 24-106-108, and subject to the provisions of article 109 of this title 24. (b) A contractor shall be required to submit cost or pricing data if any adjustment in contract price is subject to the provisions of section 24-103-403. (3) The executive director shall promulgate rules requiring the inclusion in state construction contracts of clauses providing for appropriate remedies and covering the following subjects: (a) Liquidated damages as appropriate; (b) Specified excuses for delay or nonperformance; (c) Termination of the contract for default; and (d) Termination of the contract in whole or in part for the convenience of the state. (4) The contract clauses promulgated under this section may be set forth in rules; except that such rules shall be consistent with section 24-91-103.5 (1) and (2) and section 24-30-1303 (1)(s)(IV).

C.R.S. § 24-105-302 Fiscal responsibility

24-105-302. Fiscal responsibility. Every contract modification or contract price adjustment under a construction contract with the state in excess of an amount specified in the contract shall be subject to prior written certification by the controller or other official responsible for monitoring and reporting upon the status of the costs of the total project or contract budget as to the effect of the contract modification or adjustment in contract price on the total project or contract budget. In the event that the certification of the controller or other responsible official discloses a resulting increase in the total project or contract budget, the procurement agent shall not execute or make such contract modification or adjustment in contract price unless sufficient funds are available therefor or the scope of the project or contract is adjusted so as to permit the degree of completion that is feasible within the total project or contract budget as it existed prior to the contract modification or adjustment in contract price under consideration; except that, with respect to the validity of any executed contract modification or adjustment in contract price which the contractor has reasonably relied upon, it shall be presumed that there has been compliance with the provisions of this section.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-24.docxFetched: 10/6/2026