Chapter 10 - § 10.7 RAILROAD AND IRRIGATION PROJECTS

• Jurisdiction: Colorado

§ 10.7 RAILROAD AND IRRIGATION PROJECTS

Railroad, reservoir, and canal company contracts have their own statutes and remedies dedicated to them at C.R.S. §§ 38-26-102 through -104. These contracts rarely come up, but the statutory remedies are similar to the bonding and verified statement of claim requirements found in C.R.S. §§ 38-26-105 through -107. However, the notice requirements and timing requirements are vastly different from those found in C.R.S. §§ 38-26-105 through -107, and therefore a thorough reading of the statutes is required.

The leading case regarding these statutes is Olson v. Model Land & Irrigation Co.⁶⁵

The statutes are set out below for review.

38-26-102. Railroad and Irrigation Contractor's Bond - Action - Limitation
(1) Whenever any railroad, reservoir, or irrigating canal company contracts with any person or corporation for the construction of its railroad, reservoir, or irrigating canal, or any part thereof, such company shall take from the person or corporation with whom such contract is made a good and sufficient bond, conditioned that such contractor shall pay or cause to be paid to all laborers, mechanics, materialmen, ranchmen, farmers, merchants, and other persons who supply such contractor, or any of his or her subcontractors, with labor, work, laborers, materials, ranch or farm products, provisions, goods, or supplies of any kind all just debts incurred therefor in carrying on such work, which bond shall be filed by such company in the office of the county clerk and recorder in the county where the principal work of such contractor is carried on. If any such railroad, reservoir, or irrigation canal company fails to take such bond, such company shall be liable to the persons mentioned to the full extent of all such debts so contracted by such contractor or any of his or her subcontractors. Any such contractor may take a similar bond from each of his or her subcontractors to secure the payment of all debts of the kind mentioned incurred by such contractor and file the same.
(2) All such persons mentioned in this section to whom any debt of the kind mentioned is due from any such contractor or subcontractor shall severally have a right of action upon any such bond covering such debt taken as provided for the recovery of the full amount of such debt. A certified copy of the bond shall be received as evidence in any such action. In order that the right of action upon such bonds may exist, such person or parties granted such

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