You have two years from discovery of a construction defect to file a claim in Colorado, subject to a six-year statute of repose.

Specifically:

• Six years for any latent defects to arise 

• Two-year statute of limitations from when you discovered or should have discovered the issue

These timeframes can be complicated by contractual notice requirements. Missing a deadline can permanently bar your claim, so it's crucial to consult with a Colorado construction attorney promptly when issues arise.

CDARA requires written notice and an opportunity to repair before filing a construction defect lawsuit in Colorado. This law establishes a strict pre-litigation process for construction defect claims, including:

• Mandatory written notice to construction professionals 75 days before filing suit (90 days for commercial properties)

• Detailed description of alleged defects in the notice

• 30-day inspection rights for construction professionals after notice

• 30-day window for construction professionals to offer repairs or compensation (45 days for commercial properties)

• Specific limitations on recoverable damages

Failing to comply with CDARA's procedures can result in a lawsuit being stayed. Both property owners and construction professionals benefit from experienced legal guidance to navigate this complex process.

File preliminary notices and preserve lien rights within strict statutory deadlines to protect payment on Colorado projects. Colorado's mechanics' lien process includes:

• Notice of Intent to Lien (10 days before filing)

• Statement of Lien Rights (4 months after last work performed) 

Missing these deadlines permanently eliminates lien rights. At Structura Law, we help clients establish proactive processes to protect payment rights from project start to completion.

You can recover direct repair costs, delay expenses, and sometimes consequential damages in Colorado construction cases. Potential recoverable damages include:

• Direct costs of repairs or completion

• Delay and extended overhead costs (with proper documentation)

• Lost profits and business interruption (if foreseeable)

• Diminution in property value (particularly in defect cases)

• Relocation expenses during repairs (for serious habitability issues)

• Attorney fees and costs (only if provided by contract)

The specific damages available depend on your role (owner, contractor, supplier), contract terms, and the nature of the dispute. Colorado courts require clear documentation and expert testimony to establish many of these damage categories.

Insurance often provides the primary source of recovery in Colorado construction cases, but coverage depends on policy language and Colorado law. Construction projects typically involve multiple insurance policies, including:

• Commercial General Liability (CGL) coverage for property damage and bodily injury

• Builders Risk policies for damages during construction

• Professional Liability insurance for design errors

• Wrap policies (OCIP/CCIP) for project-wide coverage

Colorado courts have issued significant rulings on insurance coverage for construction defects, including when defective work constitutes an "occurrence" and how business risk exclusions apply. Jennifer Arnett's background as a Chief Litigation Officer for a national insurance company provides Structura Law clients with unique insights into maximizing coverage for construction claims.

Yes, but your case will proceed through arbitration rather than court litigation, following the procedures in your contract.

Colorado generally enforces arbitration provisions in construction contracts, with these key considerations:

• The claim must be filed within the same statute of limitations as a court case

• The arbitration process typically involves:

  • Filing a demand for arbitration with the specified forum (AAA, JAMS, etc.)

  • Selection of arbitrator(s) according to the contract

  • Limited discovery compared to litigation

  • A binding decision with very limited appeal rights

While arbitration is often faster than litigation, it may involve higher upfront costs and provides less extensive discovery. We can help you navigate arbitration requirements for your Denver or Colorado construction project, identifying strategic advantages within the process.