1 Colo. Code Regs. § 101-1-4-2

Current through Register Vol. 48, No. 1, January 10, 2025

Rule 1 CCR 101-1-4-2 - CAPITAL CONSTRUCTION PROJECTS

1.AUTHORITY

§24-30-1301, C.R.S. (State Buildings)

§24-30-1404, C.R.S. (Professional Services Contracts)

Title 24, Article 75, Part 3, C.R.S. (Capital Construction Fund)

§24-91-103, C.R.S. (Retainage)

Title 24, Article 92, C.R.S. (Construction Bidding for Public Projects)

§38-26-106, C.R.S. (Contractor Bonds)

§38-26-107, C.R.S. (Supplier Claims)

2.DEFINITIONS

2.1. Capital Construction Fund - See Fiscal Rule 4-1 (Capital Construction Administration)

2.2. Capital Construction Project - A project for Capital Construction as described in § 24-30-1301(2), C.R.S.

2.3. Controlled Maintenance Project - A project for Controlled Maintenance, as described in § 24-30-1301(4), C.R.S.

3.RULE

3.1. Capital Construction Projects

3.1.1. Use of Funding - All funds for Capital Construction Projects shall be used for their intended purpose. A State Agency or Institution of Higher Education shall not use the Capital Construction Fund to pay or reimburse State employees for construction management, administrative activities, direct labor performed, or any other expense of the Capital Construction Project or Controlled Maintenance Project. Capital Construction funding may be used for personal services payments to independent contractors for activities within the scope of the Capital Construction Project or Controlled Maintenance Project, including design or construction services. The State Controller may create additional restrictions on the use of Capital Construction Funds in policy or the Fiscal Procedures Manual.

3.1.2. Six Month Rule - State Contracts for Capital Construction Projects shall be executed and the funds encumbered within the time limits established by and in accordance with the requirements of § 24-30-1404(7), C.R.S. If a State Agency or Institution of Higher Education determines that the deadlines imposed by the statute cannot be met, the State Agency or Institution of Higher Education may request the General Assembly's Capital Development Committee to recommend to the State Controller that the deadline be waived. The State Controller may, but is not required to, grant the waiver. This Fiscal Rule does not apply to projects at Institutions of Higher Education that are funded solely from cash funds held by the Institution or other exemptions provided in statute.

3.1.3. Availability of Capital Construction Funds - Appropriated Capital Construction Funds are available immediately upon signature of the Governor, as current year appropriations. Appropriated Capital Construction Projects must be initiated by the end of the fiscal year following the original appropriation and will remain available for expenditure or Encumbrance for a period of three years or until completion of the Project, whichever is first.

3.2. Capital Construction Project Retainage

3.2.1. A State Agency shall withhold retainage for all construction and Controlled Maintenance Projects where the total amount of the Capital Construction Contract exceeds the limit established by § 24-91-103, C.R.S. Institutions of Higher Education shall withhold this retainage for all projects that are not cash funded. The retainage shall be in the form of monies withheld from the contractor or in any other form authorized by statute and acceptable to the State Agency or Institution of Higher Education.

3.2.2. Partial retainage may be released as discrete portions of work are completed, accepted, and advertised for partial settlement. Final retainage shall be released by the State Agency or Institution of Higher Education only when the Capital Construction Contract has been satisfactorily completed and accepted, the State Agency or Institution of Higher Education has proof of publication of "Notice of Final Settlement", in accordance with § 38-26-107, C.R.S., and there are no outstanding claims against the project.

3.2.3. The retainage requirement does not apply to Professional Services Contracts.

1 CCR 101-1-4-2

41 CR 19, October 10, 2018, effective 11/1/2018

45 CR 11, June 10, 2022, effective 7/1/2022

46 CR 11, June 10, 2023, effective 7/1/2023

47 CR 08, April 25, 2024, effective 7/1/2024