Senate committee advances bill to limit forfeiture when verified claims on public projects are found excessive
February 09, 2026 | 2026 Legislature CO, Colorado
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The Senate Judiciary Committee on Feb. 9 advanced Senate Bill 74 by a 7-0 vote to the Committee of the Whole (consent calendar). The measure clarifies that, if a contractor or subcontractor’s verified statement of claim on a public construction project is later judged excessive, the penalty should be limited to bond- or lien-related remedies — not the contractor’s separate contractual or common-law rights to recover payment.
Why it matters: supporters including Associated Builders and Contractors and multiple construction firms told the committee a recent Colorado Court of Appeals decision (Ralph Wadsworth Construction Co. v. Regional Rail Partners) had read two words in the Public Works Act in a way that risked stripping contractors of broader remedies when a claim is later found excessive. That decision, they said, introduced uncertainty that discourages bidding on public projects and could reduce competition and increase costs.
Supporters' case: Jack Tate, president of the Rocky Mountain chapter of Associated Builders and Contractors, said the bill restores how the law had been understood for roughly 20 years and limits penalties to bond/lien sanctions and fee awards, while preserving deterrents for bad-faith claims. Counsel and contractor witnesses gave examples of delay, disruption and legitimate disputed work that historically were recoverable through contract claims even if a particular bond claim was reduced.
Committee action: After testimony from trade groups and contractors, the committee voted 7-0 to advance the bill and the sponsors moved to place SB74 on the consent calendar; there was no objection.
Outcome and next steps: SB74 will be scheduled for the Committee of the Whole on the consent calendar as advanced by Judiciary. Supporters called the change narrow and corrective, not substantive protection for bad-faith claims.
Reported from the Senate Judiciary Committee hearing record on Feb. 9, 2026.
Why it matters: supporters including Associated Builders and Contractors and multiple construction firms told the committee a recent Colorado Court of Appeals decision (Ralph Wadsworth Construction Co. v. Regional Rail Partners) had read two words in the Public Works Act in a way that risked stripping contractors of broader remedies when a claim is later found excessive. That decision, they said, introduced uncertainty that discourages bidding on public projects and could reduce competition and increase costs.
Supporters' case: Jack Tate, president of the Rocky Mountain chapter of Associated Builders and Contractors, said the bill restores how the law had been understood for roughly 20 years and limits penalties to bond/lien sanctions and fee awards, while preserving deterrents for bad-faith claims. Counsel and contractor witnesses gave examples of delay, disruption and legitimate disputed work that historically were recoverable through contract claims even if a particular bond claim was reduced.
Committee action: After testimony from trade groups and contractors, the committee voted 7-0 to advance the bill and the sponsors moved to place SB74 on the consent calendar; there was no objection.
Outcome and next steps: SB74 will be scheduled for the Committee of the Whole on the consent calendar as advanced by Judiciary. Supporters called the change narrow and corrective, not substantive protection for bad-faith claims.
Reported from the Senate Judiciary Committee hearing record on Feb. 9, 2026.
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