A new Law360 article by construction lawyers Daniel Miktus and Steven Paletz examines Colorado's new retainage bond law, H.B. 26-1311, which takes effect Aug. 12, 2026, and allows contractors and subcontractors on qualifying private construction projects to provide a retainage bond in place of traditional cash retainage. The authors explain that the law shifts owners' leverage from withholding project funds to relying on surety-backed security, requiring owners to accept compliant bonds while adapting their contract administration, payment procedures, and risk management practices.
Daniel and Steven advise property owners and developers to update construction contracts, internal protocols, and lender communications before the law takes effect, emphasizing that proactive planning will be essential as Colorado adopts this new approach to balancing contractor cash flow with project security.