Colorado Legal Update David Arkell, Partner Trip DeMuth, Partner Ben - - PowerPoint PPT Presentation

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Apr 14, 2023 242 likes •374 views

Colorado Legal Update David Arkell, Partner Trip DeMuth, Partner Ben Petre, Associate House Bill 14-1387 J. David Arkell HB 14-1387 General update of capital-related statutes for state agencies and state higher education. Deals with,

SLIDE 1

David Arkell, Partner Trip DeMuth, Partner Ben Petre, Associate

Colorado Legal Update

SLIDE 2

J. David Arkell

House Bill 14-1387

SLIDE 3

HB 14-1387

►General update of capital-related statutes for state agencies and

state higher education.

►Deals with, among other items, capital construction, controlled

maintenance, project oversight and review, and lease and purchase of real estate by state agencies and state higher education.

►“Current practice shows that thresholds governing the

procurement of various services associated with capital projects are too low and need to be modified.”

SLIDE 4

HB 14-1387

►Amends threshold amounts used to determine when general

contractors must provide payment and performance bonds on state and local construction projects.

SLIDE 5

HB 14-1387

►Background: General contractors on state and local public

construction projects must provide payment and performance bonds, under the Colorado Public Works Act (C.R.S. §38-26- 105 and -106) and the State Procurement Code (C.R.S. §24- 105-202).

SLIDE 6

HB 14-1387

►Background: Colorado Public Works Act allows unpaid

subcontractors to file a verified statement of claim (similar to a “stop notice” in other states), and requires the state or local agency to publish notice of final settlement (C.R.S. §38-26-107)

SLIDE 7

HB 14-1387

►HB 1387 increases the threshold for contracts on which the

state must require payment and performance bonds from $100,000 to $150,000.

►HB 1387 does not change the threshold for requiring payment

and performance bonds by political subdivisions of the state (e.g., counties, special districts, and municipalities) (threshold remains at $50,000).

SLIDE 8

HB 14-1387

►HB 1387 increases the threshold for requiring publication of

notice of final settlement by the state or by political subdivisions

f the state from $50,000 to $150,000.

►HB 1387 does not affect the ability of an unpaid subcontractor to

file a verified statement of claim on a contract of any size for the state or political subdivisions of the state.

SLIDE 9

HB 14-1387

►HB 1387 does not affect the Miller Act threshold for requiring

payment and performance bonds on Federal contracts (remains at $100,000).

SLIDE 10

Ben Petre

Developments in Colorado’s Construction Defect Law

SLIDE 11

Recent Developments in Colorado

►Legislative Update

– Three bills aimed at changing the unfavorable climate within Colorado’s condo construction industry

Condos represent only 2 percent of the new housing market in metro Denver,

versus 20% in other areas

– SB 216 – Sought to provide state financial assistance to help builders meet the cost of insurance premiums for condos costing less than $500K

Builders report that insurance premiums for condos triple that of apartment units

– SB 219 – Sought to create a multi-agency study on the condo issue – SB 220 – Sought to push more multi-family construction defect cases into arbitration; require full disclosure to homeowners; and require super majority

f homeowners to approve a construction defect lawsuit

Colorado Legal Update

House Bill 14-1387

HB 14-1387

►General update of capital-related statutes for state agencies and

state higher education.

►Deals with, among other items, capital construction, controlled

maintenance, project oversight and review, and lease and purchase of real estate by state agencies and state higher education.

►“Current practice shows that thresholds governing the

procurement of various services associated with capital projects are too low and need to be modified.”

HB 14-1387

►Amends threshold amounts used to determine when general

contractors must provide payment and performance bonds on state and local construction projects.

HB 14-1387

►Background: General contractors on state and local public

construction projects must provide payment and performance bonds, under the Colorado Public Works Act (C.R.S. §38-26- 105 and -106) and the State Procurement Code (C.R.S. §24- 105-202).

HB 14-1387

►Background: Colorado Public Works Act allows unpaid

subcontractors to file a verified statement of claim (similar to a “stop notice” in other states), and requires the state or local agency to publish notice of final settlement (C.R.S. §38-26-107)

HB 14-1387

►HB 1387 increases the threshold for contracts on which the

state must require payment and performance bonds from $100,000 to $150,000.

►HB 1387 does not change the threshold for requiring payment

and performance bonds by political subdivisions of the state (e.g., counties, special districts, and municipalities) (threshold remains at $50,000).

HB 14-1387

►HB 1387 increases the threshold for requiring publication of

notice of final settlement by the state or by political subdivisions

►HB 1387 does not affect the ability of an unpaid subcontractor to

file a verified statement of claim on a contract of any size for the state or political subdivisions of the state.

HB 14-1387

►HB 1387 does not affect the Miller Act threshold for requiring

payment and performance bonds on Federal contracts (remains at $100,000).

Ben Petre

Developments in Colorado’s Construction Defect Law

Recent Developments in Colorado

►Legislative Update

– Three bills aimed at changing the unfavorable climate within Colorado’s condo construction industry

versus 20% in other areas

– SB 216 – Sought to provide state financial assistance to help builders meet the cost of insurance premiums for condos costing less than $500K

– SB 219 – Sought to create a multi-agency study on the condo issue – SB 220 – Sought to push more multi-family construction defect cases into arbitration; require full disclosure to homeowners; and require super majority

►Lakewood Ordinance