Corporate Law

How Long Are Contractors Responsible for Construction Defects in Colorado? featured image

How Long Are Contractors Responsible for Construction Defects in Colorado?

Contractors are usually held liable for construction defects related to the construction of buildings. Every state has a set of laws that govern how long the contractor can be held liable for these construction defects. The length of time varies based on several factors and from state to state. In this editorial, a Colorado Springs construction lawyer discusses how long contractors are responsible for construction defects in Colorado.

Related: How to Avoid Being Blamed for a Construction Defect

Statute of Limitations

There are two stipulations on the length of time that contractors can be held liable for construction defects: the statute of limitations and the statute of repose. The statute of limitations limits how long you have to file your lawsuit after the problem is discovered. In Colorado, the statute of limitations is two years.

Statute of Repose

The statute of repose works almost the same as the statute of limitations but with one fundamental difference. The statute of repose begins the date of substantial completion and lasts a year. This way, you effectively have a year maximum time limit for how long construction companies can be held liable for construction defects. Even if the problem was discovered in the sixth year of the statute of repose, the construction company is only liable to the end of the year despite the statute of limitations being longer. The statute of limitations or the statute of repose can be overridden based on whichever statute ends first.

Related: Statute of Limitations vs. Statute of Repose

Why Have Limitations?

Having limitations on liability for construction projects is important for construction companies. Prior to the establishment of laws, construction companies could be held liable for defects indefinitely. That means that every project a construction company worked on could potentially end in a lawsuit at any point. This would make it impossible for construction companies to continue to do work that has the potential for being sued out of business with every project. Fortunately, liability limitation laws stop this from happening.

Possible Changes

Colorado is reviewing proposed changes to the laws regarding construction liability. These changes will extend the statute of limitations and the statute of repose, so that construction companies will be held liable for the next up to 12 years after the project is completed. In some cases, this may be a better option for homeowners since defects take a long time to fully develop in a way that can be easily seen by the owner. On the other hand, it will likely increase the number of cases filed against construction companies for defects.

Protect your company from excessive construction defect cases by ensuring that your services are top-quality. You may be able to successfully defend your company from erroneous defect claims by taking legal action. If you have any questions about construction defects or liability laws, contact a Colorado Springs construction lawyer from Cotney Attorneys & Consultants.

If you would like to speak with a Colorado Springs construction attorney, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.