Colorado Construction Litigation Attorneys

In Colorado, a construction defect lawsuit must be filed within a two-year statute of limitations from the moment the defect is discovered or should have been reasonably identified. Regardless of discovery, the statute of repose creates an absolute deadline of six years from the substantial completion of the improvement to the property. This deadline can be extended to eight years if the defect appears in the fifth or sixth year of the original window. These timelines can be paused, or "tolled," by initiating a formal Notice of Claim process or pursuing certain warranty claims. Finally, specific exceptions exist for third-party indemnity claims, which must be brought within 90 days of a settlement or final judgment.

Under Colorado's Construction Defect Action Reform Act (CDARA), you generally must complete the statutory notice-of-claim process before filing suit against a construction professional: the claimant must send a written notice of claim at least 75 days before filing (90 days for commercial property), and a suit filed without compliance is stayed (postponed) until compliance occurs. C.R.S. 13-20-803.5 Once the builder receives the notice, they may inspect the property and, after the inspection, may make a timely written offer to settle or remedy the claimed defect. If the builder doesn't make an offer, the property owner rejects the offer, or the builder fails to comply with an accepted offer, the claimant may then file an action. Melssen v. Auto-Owners Ins. Co., 2012 COA 102, Smith v. Exec. Custom Homes, Inc., 230 P.3d 1186. The homeowner is not required to accept an offer to remedy. C.R.S. 13-20-803.5

Colorado has legal protections for a property owner whose contractor charges significantly more than the initial estimate. Generally, contractors must notify a homeowner of cost increases if the contract specifies this obligation. The Colorado Consumer Protection Act (CCPA) prohibits a contractor from making false representations about the price of services or from failing to explain why additional or more expensive materials are needed. Homeowners who've been wrongfully overcharged may be able to seek damages for breach of contract, assert consumer protection claims, or seek restitution.

In Colorado, the Construction Defect Reform Act (CDARA) defines a construction defect as a problem in design, construction, materials, or workmanship that damages your property or costs you money. This can include issues such as foundation cracks, roof leaks, faulty plumbing or HVAC systems, poor drainage, or even poorly designed architectural plans that were closely followed. If your home isn’t working the way a reasonable person would expect it to, there could be a defect. If you think that's the case, act quickly. In Colorado, you have two years from when you discover the problem to file a claim, and no more than six years from when construction was finished, or up to eight years if the defect shows up later within that window.

Yes — Colorado law lets homeowners pursue legal action against a builder for defective construction. You can make claims for breach of warranty, and homeowners have several avenues to pursue a builder for defective construction, including claims for breach of warranty, negligence, and building code violations. However, you must first send the builder a written Notice of Claim, which gives them a chance to inspect and offer a repair. Only after this step can you file a lawsuit. Most cases go to the District Court unless your damages are valued at less than $7,500. Keep in mind that the clock is ticking — you generally have six years from when construction was substantially completed to bring a claim, so act promptly.

There are several ways to remove a mechanic’s lien from your home, depending on your situation. If the lien has been on your property for more than 180 days and the contractor hasn’t filed a lawsuit to enforce it, then the lien has expired — and you can file a notice of expiration with the county recorder to clear it from your title. If the lien is still valid, you can post a release bond for 150% of the lien amount, which removes the lien from your property and shifts the contractor's claim to the bond. If the lien was filed incorrectly, such as with the wrong property description, missing required language, or filed too late, you can ask the court to remove it entirely. Get a copy of the lien from the county recorder’s office, and check the filing date to decide what to do next.

This is the part of your contract that requires you to settle disputes through private arbitration rather than going to court. If something goes wrong with your home and you want to take action against the builder, you give up your right to a jury trial and instead present your case to a neutral third-party arbitrator — often a retired judge or attorney. The arbitrator’s decision is usually final and very hard to appeal, so most homeowners are bound by it without realizing it. Before you sign any construction contract, make sure you understand the dispute resolution process and what rights you might be giving up.

Most homeowner's insurance policies cover sudden, accidental damage, such as a burst pipe or a fire, but not problems caused by how your home was built. Construction defects are generally treated as a builder's liability issue, not a property casualty event, which means they are outside the scope of standard coverage. Your builder's general liability insurance may be the more relevant policy. However, getting a claim paid through that channel often involves its own hurdles. If you find a defect, it’s usually better to go directly to the builder through Colorado's construction defect notice and repair process rather than rely on your own insurance.

Colorado's HB 25-1272, known as the Colorado American Dream Act, was signed into law in May 2025, setting up the Multifamily Construction Incentive Program (MCIP). As of January 1, 2026, condo and townhome builders can opt into the program.  If your builder participates, they must provide you with written warranties: one year for workmanship and materials, two years for plumbing, electrical, and mechanical systems, and six years for structural parts. They also have to allow independent third-party inspections during construction. The tradeoff for you as a homeowner is that construction claims are limited to defects that affect safety or cause substantial damage, rather than minor or cosmetic concerns. In short, you get more upfront protection through inspections and warranties, but a narrower path to litigation if things go wrong later. Whether that's a good deal depends on your needs, so it’s best to make sure you understand the terms before closing.

Going two weeks without contact for a contractor could be cause for concern, but it ultimately depends on what your contract says and whether the contractor gave a reason for stopping. The most important thing you can do right now is send the contractor a written notice by certified mail stating that work has stopped, listing what's left unfinished, and giving them 7 to 10 days to respond or return to work. If they don't respond, you’ll be in a stronger position to claim abandonment, hire someone else to finish, and seek the cost difference from the original contractor. Start documenting everything now. Photos, texts, emails, and a timeline of when work stopped will help if you need to go to court.

The honest answer is: you need an expert who isn't on the builder's payroll to make that call. Hire a licensed structural engineer or independent home inspector to determine whether the settling is normal or has resulted in structural damage. Having their assessment in writing should provide you with the clarity you need to determine next steps. 

Yes, a mechanic’s lien can result in you losing your home, but this doesn’t happen overnight. In Colorado, a contractor who files a mechanic’s lien has to win a foreclosure lawsuit and force the property’s sale. Colorado law gives the contractor six months from the last date substantial work or materials were provided to file a lawsuit. The judicial foreclosure process is notoriously strict, giving homeowners time to respond and challenge the lien's validity.