Denver council passes bill changing small-business contracting rules
The measure would require faster payments to qualifying subcontractors, limit changes to their work and allow some contracts to be reserved for certified small businesses.
Denver City Council passed a bill Sept. 21 that would change rules for city contracts involving minority- and women-owned business enterprises (MWBEs) and small business enterprises (SBEs). The city legislative record showed the bill awaiting the mayor’s signature on Sept. 22.
Under the filed bill, contractors on covered city contracts would have to pay qualifying MWBE and SBE subcontractors within 35 calendar days after receiving an invoice for completed, accepted and undisputed work, whether or not the prime contractor had been paid. The requirement would apply only to contracts above a threshold set by Denver’s Division of Small Business Opportunity (DSBO); the bill does not specify the amount.
The bill would generally require DSBO’s prior written consent before a contractor could replace or terminate a designated MWBE or SBE subcontractor, or reduce that firm’s work. Contractors would have to notify the affected business and give it an opportunity to respond. If the city directs the change, the bill instead calls for notice to DSBO and the subcontractor.
The bill would also let DSBO designate selected contracts or projects for competition limited to certified SBEs, rather than restricting competition on all city contracts. It defines MWBEs as businesses at least 51% owned and controlled by socially and economically disadvantaged individuals, and SBEs as businesses at least 51% owned and controlled by economically disadvantaged individuals. DSBO would set participation goals for each contract based on the work and availability of certified firms.
If enacted, the provisions would take effect Nov. 1, 2026, for covered DSBO requirements and solicitations advertised on or after that date. The bill sets a repeal date of Oct. 31, 2032.