Private construction contracts - retainage - conditions precedent
C.R.S. § 38-46-103
in effect38-46-103. 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: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-38.docx#38-46-103Fetched: 10/6/2026