Updated May 30, 2017
Condominium construction has stalled in Denver. Homeownership Opportunity Alliance (HOA) cites rising developer insurance costs due to an increase in construction defect lawsuits in Colorado. Currently, state law makes it relatively easy for a homeowner’s association board to take a builder to court over construction deficiencies. The current bill, HB 1297, would require the condo homeowner’s board to first meet with the builder to voice building concerns and see if a remedy can be struck. If both parties cannot find a solution, then the homeowner’s board has 90 days to vote on whether to pursue a lawsuit against the builder. A bipartisan effort, the bill’s supporters say it’s an attempt to strike a compromise between protecting homeowners from shoddy craftsmanship and contractors from a climate of elevated litigation risk. The bill was passed by the Colorado House of Representatives on April 24, 2017 and now moves to the Senate floor.
A bipartisan effort, Bill 211 was passed April 13, 2017. Its goal is to increase competition for state road contracts, effectively allowing smaller contractor companies into the bidding process. Current rules state that contractors must be pre-qualified before seeking state contracts with agencies such as CDOT. The current qualification procedure requires a contractor to obtain a security bond(s) that amounts to the 5% of the overall contract price. This meant that smaller companies had to either take out multiple bonds or were unable to secure the amount needed to bid. The bill will now forbid the agency from eliminating a contractor based on their financial statement, which is submitted for pre-qualification purposes.
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