FAQ: What should I include in my Colorado construction contract?
A construction contract lays out each party’s obligations and rights on a project. Contracts may vary in length and content, but certain criteria are required by federal and Colorado state law for all residential roofing and home renovation contracts. This article answers a few questions about what you should always include in your Colorado contractor contract.
Colorado law has no statutory requirements for the form and content of most construction contracts. However, there are specific requirements for residential roofing contracts.
- 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
- your contact information, including physical address, email, phone number, and any other available contact information
- your surety and liability coverage insurance and its contact information
- your cancellation and deposit refund policies Colo. Revised Statutes § 6-22-103
Your scope of work should include a detailed, itemized list of the work, products, and materials. Be sure to include related costs, estimated dates of service, and a payment plan.
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.
Cancellation policies should include a clause stating that your client may rescind 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.
If everyone is in agreement, an attorney can help you modify and update the contract. However, this requires the opposing party to agree to the modification.
It depends. General contractors do not have to be licensed at the state level. However, local city or county
governments typically impose general contractor licensing requirements.
Colorado requires certain trades, including plumbers and electricians to be licensed. Colo. Rev. Stat. § 12-155-101
For violations by plumbers, penalties include citations and fines from $1,000 for the first offense and up to $2,000 for each day of a violation for subsequent offenses. Colo. Rev. Stat. § 12-155-123
A tradesman practicing without a required license may also be guilty of violating the Colorado Consumer Protection
Act (Colo. Rev. Stat. § 6-1-105.)
In Colorado, a contractor that supplies labor, machinery, tools, or equipment to be used in the construction,
alteration, or repair of any structure has mechanics lien rights, regardless of licensure. Colo. Rev. Stat. § 38-22-101
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.