Committee clarifies penalties for excessive public‑works claims in SB 74 and adopts amendments

Representative Camacho told the committee Senate Bill 74 addresses an inconsistency created by a recent Court of Appeals decision that could strip contractors of remedies for otherwise legitimate claims on public projects. The sponsor said SB 74 would ensure that a contractor found to have filed an excessive verified statement of claim forfeits only statutory bond rights and not all contractual or common‑law remedies.

Trade association witnesses — including the Rocky Mountain chapter of Associated Builders and Contractors and Associated General Contractors — testified in support. Jack Tate and Michael Gifford said the bill provides clarity that preserves payment protections for contractors and discourages abusive, bad‑faith claims.

The committee adopted four amendments (L1, L5, L6, L4) that mirror protections across public‑works and private mechanics‑lien statutes (including language preserving rights when a claimant files in good faith and allowing certain delayed damages to be included). With those amendments adopted, the committee moved SB 74 to the Committee of the Whole with a favorable recommendation.