Colorado Construction Defect Law: What Homeowners and HOAs Need to Know

You notice that a foundation crack keeps widening, a leak keeps coming back, or doors no longer close. The builder has stopped returning your calls, and you need answers about Colorado construction defect law.

We know how stressful this is. Wondering whether the problem is "bad enough" to matter is normal. Colorado law gives homeowners rights, but it also sets strict steps and deadlines that can quietly end a claim if missed. Below, we cover what counts as a defect, who is liable, the CDARA notice process, the deadlines, what you can recover, and what a case costs.

We have resolved more than 1,000 cases and recovered over $500 million for Colorado homeowners and HOAs.

What Is Colorado Construction Defect Law?

Colorado construction defect claims are governed by the Construction Defect Action Reform Act, known as CDARA, found at C.R.S. 13-20-801 and following sections.

CDARA does not stop homeowners from suing. It sets the rules of the road: a required pre-suit notice, a chance for the builder to inspect and offer a repair or payment, deadlines for filing, and limits on certain damages.

HOAs face extra requirements before filing. Under the Colorado Common Interest Ownership Act, C.R.S. 38-33.3-303.5, those requirements include notifying owners and getting a vote.

The Homeowner Protection Act of 2007 generally prevents builders from using contract fine print to make homeowners waive their CDARA rights.

In our experience, many homeowners wait too long because they assume small symptoms mean a small problem. That assumption can be costly.

What Counts as a Construction Defect, and Who Is Liable?

A construction defect is generally work that fails to meet building codes, approved plans, industry standards, or the builder's warranties, and causes damage or a risk of damage.

Common examples include:

• Foundation and soil movement
• Water intrusion and roof leaks
• Improper drainage and grading
• Structural framing problems
• Failing windows, stucco, or siding

One defect often leads to another, as when poor grading sends water toward the foundation.

Liability often falls on more than one party, including:

• The builder or general contractor
• The developer
• Subcontractors
• Design professionals such as architects and engineers

Colorado recognizes an implied warranty of habitability and good workmanship on new homes. 

We explain each defect type and every potentially liable party in more detail in our dedicated articles.

How Does the CDARA Notice of Claim Process Work?

Before filing a lawsuit, a homeowner must send the builder a written notice of claim describing the defects. Under C.R.S. 13-20-803.5, it must go out at least 75 days before filing for residential property, or 90 days for commercial property.

The process works like this:

• Step 1: Send a written notice of claim describing the defects in reasonable detail.
• Step 2: The builder has 30 days to request an inspection.
• Step 3: Within 30 days after the inspection, the builder may offer to repair, pay, or both.
• Step 4: The homeowner has 15 days to accept or reject the offer.
• Step 5: If there is no acceptable resolution, the homeowner may file suit after the notice period.

A vague or rushed notice can weaken a claim, and an early lowball offer is common. Before sending notice, document everything with photos and dates.

We cover the notice process step by step in our dedicated notice of claim guide.

What Are the Two Deadlines for a Construction Defect Claim in Colorado?

Colorado has two separate clocks, and missing either one can end your claim permanently. They run at the same time, so you must satisfy both.

The Two-Year Statute of Limitations

Under C.R.S. 13-80-104, claims must be filed within two years after the homeowner discovers, or reasonably should have discovered, the physical signs of the defect.

This clock can start before you know what is causing the problem. A crack you noticed last spring may already have started it.

The Six-Year Statute of Repose

Under the same statute, C.R.S. 13-80-104, claims generally cannot be brought more than six years after substantial completion of the home, no matter when the defect is found.

If the defect appears in the fifth or sixth year, the period can be extended by up to two more years.

Serving a proper CDARA notice of claim pauses (tolls) these deadlines during the notice process under C.R.S. 13-20-805.

We walk through both deadlines, with examples, in our detailed deadlines article.

What Can You Recover, and What Does a Construction Defect Case Cost?

Homeowners can generally recover their actual damages, meaning what it takes to make them whole. Recoverable damages can include:

• The cost of repairs
• Loss of use of the home
• Temporary housing and relocation costs
• Reduced property value, where appropriate
• In some cases, costs and attorney fees

Under C.R.S. 13-20-806, CDARA limits damages to actual damages in most cases. Treble, or triple, damages under the Colorado Consumer Protection Act are capped at $250,000 in construction defect cases.

As for cost, construction defect cases require expert investigation by engineers and estimators, and they can take time. Those experts determine what went wrong and what a proper repair will cost.

Many homeowners and HOAs work with counsel on a contingency fee basis, so legal fees come from the recovery rather than out of pocket. 

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Why Homeowners Choose Nelson Law

Our record includes more than 1,000 cases resolved and over $500 million recovered for Colorado homeowners and HOAs. Those results come from a quality-over-volume approach: we take fewer cases so each one gets our full attention.

We also prepare every case as if it is going to trial. Builders and insurers notice that preparation at the negotiating table.

What Should You Do Next?

If you suspect a construction defect, a few steps now can protect your claim later:

• Document every defect with dated photos and notes.
• Find your purchase contract, warranty, and any HOA declaration.
• Do not sign a release or accept a repair offer without legal review.
• Note when you first saw signs of the problem, since that date may start the two-year clock.

Talk to a construction defect attorney as soon as you suspect a real problem, and before you send a notice of claim, because the deadlines under Colorado construction defect law are unforgiving.

Please contact us for a free case review, and we will tell you where you stand and how much time you have.

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