Some Lawmakers and Businesses Seek Changes to CDARA
- posted: Feb. 21, 2025
Enacted in 2001 and amended in 2003, Colorado’s Construction Defect Action Reform Act (CDARA) was created in response to concerns over the effects of litigation arising from construction disputes. According to supporters of the law, delays and expenses were discouraging developers from initiating projects within the state. Insurance companies and construction companies welcomed CDARA, and its mandate that someone must serve a Notice of Claim against a construction professional before filing a lawsuit alleging a harmful defect.
Now, after more than two decades, certain legislators and stakeholders have called for CDARA to be updated in order to provide more protection for potential defendants in construction defect claims. Currently, the Notice of Claim process gives contractors the chance to review the alleged problem and make a settlement offer before the matter goes to court. However, a bill introduced last year would give construction professionals the right to repair purported defects in order to avert litigation. Though that bill did not pass, it is expected that a similar proposed statute will be introduced.
The concept of a right to repair is not unique to Colorado. More than 30 states have enacted similar statutes requiring homeowners to notify builders of claimed defects and provide an opportunity for repairs before filing lawsuits. These statutes are intended to reduce time-consuming and expensive litigation by facilitating out-of-court resolutions.
However, the effectiveness of right to repair statutes has been a topic of debate. Each situation is unique, and there can be instances where the relevant timeline is not sufficient to resolve exactly what type of remedial work is required.
Another proposed CDARA revision would extend the statute of repose for construction defect claims from six to 10 years, allowing claims to be brought up to 12 years after substantial completion if defects arise in the ninth or tenth year. This extension would place Colorado among the states with the longest statutes of repose for such claims.
IF you’re involved in a construction dispute involving alleged defect or some other type of issue, your top priority should be to retain an attorney who has experience resolving these matters successfully and who is well versed regarding any recent changes in the law.
The Colorado attorneys at Heckman & O’Connor P.C. represent Vail Valley clients in matters subject to CDARA and other types of construction disputes. For over 40 years, we have served communities such as Eagle, Vail, Gypsum, Avon, Minturn and Leadville. Please call 970-926-5991 or contact us online for a consultation. Our office is in Edwards.
Some Lawmakers and Businesses Seek Changes to CDARA
- posted: Feb. 21, 2025
Enacted in 2001 and amended in 2003, Colorado’s Construction Defect Action Reform Act (CDARA) was created in response to concerns over the effects of litigation arising from construction disputes. According to supporters of the law, delays and expenses were discouraging developers from initiating projects within the state. Insurance companies and construction companies welcomed CDARA, and its mandate that someone must serve a Notice of Claim against a construction professional before filing a lawsuit alleging a harmful defect.
Now, after more than two decades, certain legislators and stakeholders have called for CDARA to be updated in order to provide more protection for potential defendants in construction defect claims. Currently, the Notice of Claim process gives contractors the chance to review the alleged problem and make a settlement offer before the matter goes to court. However, a bill introduced last year would give construction professionals the right to repair purported defects in order to avert litigation. Though that bill did not pass, it is expected that a similar proposed statute will be introduced.
The concept of a right to repair is not unique to Colorado. More than 30 states have enacted similar statutes requiring homeowners to notify builders of claimed defects and provide an opportunity for repairs before filing lawsuits. These statutes are intended to reduce time-consuming and expensive litigation by facilitating out-of-court resolutions.
However, the effectiveness of right to repair statutes has been a topic of debate. Each situation is unique, and there can be instances where the relevant timeline is not sufficient to resolve exactly what type of remedial work is required.
Another proposed CDARA revision would extend the statute of repose for construction defect claims from six to 10 years, allowing claims to be brought up to 12 years after substantial completion if defects arise in the ninth or tenth year. This extension would place Colorado among the states with the longest statutes of repose for such claims.
IF you’re involved in a construction dispute involving alleged defect or some other type of issue, your top priority should be to retain an attorney who has experience resolving these matters successfully and who is well versed regarding any recent changes in the law.
The Colorado attorneys at Heckman & O’Connor P.C. represent Vail Valley clients in matters subject to CDARA and other types of construction disputes. For over 40 years, we have served communities such as Eagle, Vail, Gypsum, Avon, Minturn and Leadville. Please call 970-926-5991 or contact us online for a consultation. Our office is in Edwards.
