C.R.S. Section 38-46-103
Private construction contracts

  • retainage
  • conditions precedent

(1)

A property owner, contractor, or subcontractor shall not withhold as retainage more than five percent of the price of the work completed under the contract or subcontract. Making a partial payment under this subsection (1) is not acceptance or approval of some of the work or of a waiver of defects in the work.

(2)

This article 46 addresses only the amount of retainage that may be withheld by a property owner, contractor, or subcontractor and does not change, override, or invalidate any other provision in a contract, subcontract, or supply agreement. Such a provision includes, but is not limited to:

(a)

A provision relating to timing of a payment, including final payment;

(b)

A provision requiring satisfactory performance of the work of the contract, subcontract, or supply agreement before payment is due;

(c)

A provision allowing a property owner, contractor, or subcontractor to withhold payment or deduct from any payment otherwise due any backcharges or other amounts as authorized by the contract, subcontract, or supply agreement; or

(d)

A provision relating to a condition precedent that must be satisfied before a payment is due to a contractor, subcontractor, sub-subcontractor, or supplier. A condition precedent includes a requirement that:

(I)

A contractor must actually receive payment from the property owner to be obliged to make payment to a subcontractor or supplier; or

(II)

A subcontractor must actually receive payment from the contractor to be obliged to make payment to a subsequent subcontractor or supplier.

Source: Section 38-46-103 — Private construction contracts - retainage - conditions precedent, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-38.­pdf (accessed Oct. 20, 2023).

Green check means up to date. Up to date

Current through Fall 2024

§ 38-46-103’s source at colorado​.gov