Unpaid on a Colorado Public Project? Little Miller Act Payment Bond Claims

You supplied labor or materials on a Colorado county, city, or school project. The public owner may be protected from a mechanic’s lien on the building itself. Payment often runs through a payment bond — Colorado’s Little Miller Act.

This page covers the bond triggers in C.R.S. § 38-26-105 and § 38-26-106, the six-month suit window, and how Darkwell funding can help. For the federal Miller Act and multi-state bond overview, see also Miller Act payment bond claim funding.

Unpaid on a Colorado public project at $10,000 or more? Request a free claim review.

When Colorado requires a payment bond

C.R.S. § 38-26-105 generally requires a penal bond on contracts for more than $50,000 with a county, municipality, or school district for public buildings or public works. Subcontractors, materialmen, suppliers of rental equipment, and others may have a right of action against the principal and surety. The action for labor or materials must be brought within six months after completion of the work.

C.R.S. § 38-26-106 requires a bond (or other acceptable surety) before work starts on covered public contracts, with a penal sum of at least one-half of the contract amount (with a special rule for very large contracts). It applies to local contracts over $50,000 and state contracts over $150,000, among other listed situations.

• Get the bond. Ask for the bond number, surety, and penal sum early.
• Watch the six-month clock under § 38-26-105(1).
• Public prompt-pay rules may also apply under C.R.S. § 24-91-103.

Bond claim vs. waiting on the GC

On public jobs, waiting for the prime to get paid can burn the bond deadline. Talk with a Colorado attorney as soon as payment stalls.

Funding a bond claim

Bond claims still need counsel, notices, and often litigation against the surety. Darkwell funding can help carry those costs on qualifying claims.

How Darkwell helps

Legal costs are often what stops a good claim. Darkwell helps carry them. On a Colorado public-project bond claim, that can mean funding the suit against the principal and surety.

• We help carry the cost. Darkwell funding helps pay for the case, so your operating cash stays in your business.
• We bring attorneys we know. Darkwell has a network of attorneys we know. They help keep costs down while still pursuing the claim. The claim moves forward with an attorney from our network, or your current attorney where it fits.
• Your attorney handles the law. We don’t run your case or choose your legal strategy. Your attorney does that.
• You make a clear decision. The goal is to take the stress out of the fight and make the smart financial decision about your claim.

What to send for a claim review

• Subcontract or purchase order
• Invoices and delivery tickets
• Project name and public owner
• Bond information if you have it
• Notices already sent
• Your attorney’s contact, if you have one

How we get paid

Our fee comes out of the recovery, not your pocket. If there’s no recovery, you don’t repay our funding. Your written agreement sets the exact terms.

Where we work and claim size

For business claims, we fund in many U.S. states, reviewed state by state, where champerty rules and litigation funding laws allow our model. We confirm your state during review. See where Darkwell funds claims.

We review claims of $10,000 or more, subject to review and approval by our team.

Darkwell does not buy or collect consumer debt in states that require a collection license, including Colorado.

Common questions

Can I lien a public building in Colorado? Public works often rely on payment bonds instead of a lien on the public property. Your attorney confirms what remedies apply.

How long do I have to sue on the bond? Under § 38-26-105(1), the action for labor or materials must be brought within six months after completion of the work.

Does Darkwell control my case? No. Your attorney handles the case. Darkwell provides funding.

Sources

• C.R.S. § 38-26-105
• C.R.S. § 38-26-106
• C.R.S. § 24-91-103
• Darkwell: Miller Act payment bond claims

Public job unpaid, and the bond clock is running? Request a free claim review. Send what you have, and you’ll get a response from our team.

Related reading: Miller Act Payment Bond Claims · Sub Not Paid by GC in Colorado · Colorado Litigation Funding · Unpaid Retainage in Colorado · Where We Fund