What should I include in my Colorado construction contract?

There are no statutory requirements for the form and content of most construction contracts in Colorado. However, residential roofing contracts have specific requirements, which vary depending on the type of project, the parties involved, and the nature of the construction work. 

For example, Colorado law mandates bid security for projects exceeding $50,000. This security can be in the form of a bond, cash, or other forms acceptable for ensuring the contractor’s commitment to the bid. To better understand what requirements your construction contract needs to follow,talk to a business law attorney.

Per Colorado law, all residential roofing contracts must include the following elements:

• the scope of roofing services and materials to be provided

• the approximate dates of service

• the approximate costs of the services based on what is known at the time the contract is signed, such as damages

• your contact information, including physical address, email, phone number, and any other available contact information

• your surety and liability coverage insurance provider and their contact information

• your cancellation and deposit refund policies Colo. Revised Statutes § 6-22-103

• a statement that the property owner may rescind the contract under certain conditions outlined in Colo. Revised Statutes § 6-22-103

• a statement that if the property owner uses proceeds from a property and casualty insurance policy to pay for the roofing work, the contractor cannot pay, waive, or rebate any part of the insurance deductible

By law, your scope of work must clearly outline the services and materials to be provided. It should also specify the approximate dates of service and the estimated costs of the services. Additionally, the contract must include your contact information, including your physical address, email address, and telephone number.

Take care to be clear and direct in your word usage. Avoid ambiguous phrasing in order to prevent multiple, conflicting interpretations. This is also your opportunity to explain any standards, regulations, or special contract requirements.

Colorado law requires residential roofing contracts to include a rescission clause stating that your client has the right to terminate the contract and receive a full refund of any deposit within 72 hours after signing the contract.

Even the most streamlined construction projects are not immune to delays. That’s why it’s crucial to include a clause in your contract describing your policy for handling changes to the scope of work. Include terms and provisions to protect yourself from unexpected work and additional costs. It’s also wise to spell out exactly how you’ll resolve any disputes and claims. 

Generally, construction contracts can be modified by mutual agreement of the parties. However, adjustments to a contract should be in writing so they are enforceable. For assistance with modifying your construction contract, contact our firm.

Yes. Colorado requires licensing for construction and design professionals, such as architects, engineers, and land surveyors. The state also requires certain tradespeople, such as plumbers and electricians, to be licensed. C.R.S. § 12-155-101 Requirements vary by profession. To learn what licenses your business may need, contact one of our business representation attorneys.

In short, performing unlicensed construction work in Colorado carries significant legal consequences. Violations by trades are subject to penalties under Colorado law. For plumbers, penalties include citations and fines from $1,000 for the first offense to $2,000 for each day of violation for subsequent offenses.

For other trades, violations are classified as a Class 2 misdemeanor, with penalties determined under the misdemeanor sentencing code. Unlicensed work may also violate the Colorado Consumer Protection Act, which could lead to further legal repercussions.

Colorado law allows unlicensed contractors to retain certain enforcement rights despite these penalties. Specifically, a contractor, regardless of licensure, may have mechanics lien rights if they supply labor, machinery, tools, or equipment to construct, alter, or repair a structure. This provision ensures that unlicensed contractors can still claim compensation for their contributions to a project under specific circumstances.

Colorado does not have a prompt payment act for private contracts. Terms of payment for private contracts are
governed by the terms of the contractual agreement.