A Bill for an Act
Page 1, Line 101Concerning housing.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
For construction of middle market housing, section 3 of the bill requires a person filing a construction defect action against an architect or engineer to file with the complaint an affidavit of a third-party licensed professional indicating the negligence or other action, error, or omission of the construction professional. Section 3 also establishes a rebuttable presumption that a property does not have a construction defect when a state agency or local government has issued a certificate of occupancy for the property.
Section 4:
- Establishes a claimant's duty to mitigate an alleged construction defect and specifies how a claimant may satisfy this duty and the consequences to a claimant that fails to satisfy this duty;
- Requires that a construction professional must send or deliver to the claimant an offer to settle the claim or a written response that identifies the standards that apply to the claim and explains why the defect does not require repair; and
- Requires a construction professional who is the defendant in a construction defects action to submit specified information to the claimant.
Section 5 updates the statute of limitations for construction defect claims to 10 years unless the construction professional provided the consumer with a warranty that meets the requirements of the bill, in which case the statute of limitations is 6 years. Section 6 tolls the statute of limitations or repose during a claimant's mitigation of an alleged construction defect claim brought for the construction of middle market housing.
Section 7 allows a construction professional that meets specified requirements to use certain affirmative defenses in construction claims brought against the construction professional for the construction of middle market housing.
Current law requires the executive board of a unit owners' association (executive board) to obtain approval from a majority of owners before initiating a construction defect claim on behalf of the owners. Section 8 increases the approval amount to 65%. Section 8 also requires an executive board that is successful in a construction defect claim to first use monetary damages received as a result of the claim to repair the construction defect.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Short title - legislative declaration. (1) The short title of this act is the "Colorado American Dream Act".
Page 2, Line 3(2) The general assembly finds that:
Page 2, Line 4(a) Homeownership is a cornerstone of economic stability, but for
Page 2, Line 5many Coloradans, particularly first-time homebuyers, it has become
Page 2, Line 6increasingly out of reach. Surveys show that while 90% of renters aspire
Page 3, Line 1to own a home, more than half believe it is unattainable. This concern is
Page 3, Line 2personal for many, with over 4 out of 5 parents expressing concerns about
Page 3, Line 3whether their children will be able to afford to live in Colorado. Many
Page 3, Line 4Coloradans agree that increasing the variety and availability of housing
Page 3, Line 5options is crucial, as people want the ability to find and choose housing
Page 3, Line 6that fits their needs, whether it's through more accessible price points or housing types.
Page 3, Line 7(b) Millennials, the largest group of homebuyers in Colorado at
Page 3, Line 838% of the market, are facing increasing challenges, as the median age of
Page 3, Line 9first-time homebuyers has risen from 35 to 38 in just the past year. These
Page 3, Line 10gaps are just a few of many that highlight the urgent need for policies that
Page 3, Line 11facilitate affordable and attainable homeownership, particularly through the construction of entry-level homes.
Page 3, Line 12(c) Condominiums and townhomes have often served as
Page 3, Line 13affordable starter home options, providing the first step on the
Page 3, Line 14homeownership ladder for many Coloradans. Despite the clear need for
Page 3, Line 15these homes, however, condominium development in Colorado has
Page 3, Line 16drastically decreased. Before 2009, there were 1.25 new apartments for
Page 3, Line 17every one condominium. This has shifted radically to 14 new apartments
Page 3, Line 18for every condominium in recent years. The decline in condominium
Page 3, Line 19construction coincides with a housing shortfall of at least 100,000 homes
Page 3, Line 20in the state, further worsening the availability of affordable options for first-time buyers.
Page 3, Line 21(d) Current construction litigation laws are often cited as a
Page 3, Line 22contributing factor to the high cost of construction and a deterrent for
Page 3, Line 23developers to pursue condominium projects. At the same time,
Page 3, Line 24homeowners have limited up-front assurances of high-quality
Page 4, Line 1construction in new homes. It is critical that policies seek to support homeowners' rights while spurring development in a key housing market.
Page 4, Line 2(e) Without addressing these challenges, Colorado will continue
Page 4, Line 3to experience a shortage of entry-level homes for its first-time
Page 4, Line 4homebuyers and struggle to meet the needs of Coloradans. It is imperative
Page 4, Line 5that the state creates policies that encourage the entire housing ecosystem
Page 4, Line 6to work together to create more attainable housing options for Coloradans.
Page 4, Line 7(f) This act is intended to:
Page 4, Line 8(I) Promote the construction of affordable homes so that
Page 4, Line 9homeownership becomes a more attainable goal for a larger portion of the population;
Page 4, Line 10(II) Expand prospective homeowners' access to high-quality, well-constructed homes;
Page 4, Line 11(III) Ensure continued protections for homeowners when defects in their homes exist;
Page 4, Line 12(IV) Reform construction litigation to reduce the excessive costs associated with entry-level home development;
Page 4, Line 13(V) Strengthen Colorado's housing market by expanding opportunities for first-time homebuyers; and
Page 4, Line 14(VI) Ensure that future generations of Coloradans are able to
Page 4, Line 15access the American dream of homeownership, which is integral to long-term financial security and generational wealth-building; and
Page 4, Line 16(g) This act is rationally related to the legitimate state interest of increasing middle market hosing in Colorado.
Page 4, Line 17SECTION 2. In Colorado Revised Statutes, 13-20-802.5, add
Page 4, Line 18(4.5) and (6) as follows:
Page 5, Line 113-20-802.5. Definitions. As used in this part 8, unless the context otherwise requires:
Page 5, Line 2(4.5) "Multifamily construction incentive program" or "program" means the program created in section 13-20-803.3 (1).
Page 5, Line 3(6) "Third-party inspection" means a program of
Page 5, Line 4inspections of a residential housing unit performed over the
Page 5, Line 5course of construction on the unit and designed to assist the
Page 5, Line 6construction professional performing the construction on the
Page 5, Line 7unit in identifying and rectifying any instances in which the
Page 5, Line 8work being performed by the construction professional deviates
Page 5, Line 9from applicable building codes or construction standards. The
Page 5, Line 10construction professional who signs the building permit
Page 5, Line 11application shall certify in writing filed with the building
Page 5, Line 12department that the third-party inspection complies with the
Page 5, Line 13following requirements for any component, system, or improvement alleged to be defective:
Page 5, Line 14(a) The inspection was performed by either a licensed
Page 5, Line 15construction professional or a building code inspector,
Page 5, Line 16electrical inspector, energy conservation code inspector, fire
Page 5, Line 17code inspector, or mechanical code inspector, if such inspector
Page 5, Line 18provides evidence of completion of the most recent verison of
Page 5, Line 19the commercial building inspector examination by the International Code Council or its successor organization:
Page 5, Line 20(I) Who has expertise designing, constructing, or
Page 5, Line 21inspecting the component, system, or improvement being inspected;
Page 5, Line 22(II) Who is an independent third party not employed by or
Page 6, Line 1affiliated with the construction professional who was involved
Page 6, Line 2in the development, design, or construction of the component, system, or improvement;
Page 6, Line 3(III) Who is responsible for performing the inspection duties with a reasonable degree of care; and
Page 6, Line 4(IV) Who is not designated as a nonparty at fault pursuant to section 13-21-111.5 (3)(b); and
Page 6, Line 5(b) The inspection includes, for each component, system,
Page 6, Line 6or improvement, a signed certification that, for each component, system, or improvement,verifies that:
Page 6, Line 7(I) The component, system, or improvement was included
Page 6, Line 8in approved construction documents and specifications,
Page 6, Line 9including addendums issued during construction, under the valid seal of an architect or engineer licensed in Colorado;
Page 6, Line 10(II) (A) Prior to inspection by the building department, the
Page 6, Line 11component, system, or improvement was subject to a field
Page 6, Line 12inspection and approval by the third-party inspector who
Page 6, Line 13certifies that, at the time of inspection, the component, system,
Page 6, Line 14or improvement was sufficiently accessible to determine
Page 6, Line 15compliance with and did comply with applicable manufacturer's
Page 6, Line 16instructions or recommendations, approved construction
Page 6, Line 17documents and specifications, including addendums issued during construction, and the applicable building codes.
Page 6, Line 18(B) If the field inspection does not include every location
Page 6, Line 19where the component, system, or improvement is constructed,
Page 6, Line 20the signed certification must include the permit number; the
Page 6, Line 21date of inspection; the type of inspection; the contractor's name
Page 7, Line 1and license number; the street address of the job location; the
Page 7, Line 2name, address, and telephone number of the inspector who
Page 7, Line 3performed the inspection; and a statement that the inspector
Page 7, Line 4inspected a sufficient number of locations to conclude with a
Page 7, Line 5reasonable degree of certainty that every location of the
Page 7, Line 6component, system, or improvement complies with stamped
Page 7, Line 7project plans and specifications and the applicable building codes.
Page 7, Line 8(III) Any instance of noncompliant design or construction
Page 7, Line 9identified during an inspection has been resolved and that the
Page 7, Line 10component, system, or improvement complies with applicable standards; and
Page 7, Line 11(c) The inspection is not an inspection performed by or on
Page 7, Line 12behalf of a governmental authority having jurisdiction over
Page 7, Line 13the residential housing unit as a condition of any permitting or the issuance of a certificate of occupancy.
Page 7, Line 14SECTION 3. In Colorado Revised Statutes, add 13-20-803.3 as follows:
Page 7, Line 1513-20-803.3. Multifamily construction incentive program -
Page 7, Line 16created - construction defect claims against architects and engineers
Page 7, Line 17- rebuttable presumptions - statute of limitations - affirmative
Page 7, Line 18defenses. (1) The multifamily construction incentive program is
Page 7, Line 19created. On and after January 1, 2026, a builder of multifamily,
Page 7, Line 20attached housing of two or more units may participate in the program by:
Page 7, Line 21(a) Providing a warranty that covers any defect and
Page 7, Line 22damage for a minimum period of:
(I) One year for workmanship and materials;
Page 8, Line 1(II) Two years for plumbing, electrical, and materials; and
Page 8, Line 2(III) Six years for major structural components; and
(b) Having the units inspected by a third-party inspector.
Page 8, Line 3(2) (a) Except as provided in subsection (3) of this section,
Page 8, Line 4a person must file with a complaint a certificate of review in
Page 8, Line 5compliance with section 13-20-602 for a construction defect action that is:
Page 8, Line 6(I) Against a construction professional who is an architect or engineer; and
Page 8, Line 7(II) For a defect in the construction of middle market housing for which the builder is participating in the program.
Page 8, Line 8(b) The certificate of review filed in accordance with
Page 8, Line 9subsection(2)(a)of this section must, based on facts known to the party filing the certificate of review:
Page 8, Line 10(I) Set forth the architect's or engineer's negligence,
Page 8, Line 11including any act or omission in providing advice, exercising
Page 8, Line 12judgment, giving an opinion, or exercising a similar professional skill; and
Page 8, Line 13(II) Declare that the individual consulted can
Page 8, Line 14demonstrate by competent evidence that, as a result of training,
Page 8, Line 15education, knowledge, and experience, the consultant is
Page 8, Line 16competent to express an opinion as to the negligence, including an act or omission, alleged.
Page 8, Line 17(c) If a claimant fails to file the certificate of review
Page 8, Line 18required in this subsection (2), the court shall dismiss the
Page 9, Line 1complaint against the defendant unless the claimant shows good cause for the failure.
Page 9, Line 2(3) A claimant is not required to comply with the
Page 9, Line 3certificate of review requirements of subsection (2) of this section if:
Page 9, Line 4(a) A claim is for construction in which a governmental
Page 9, Line 5entity contracted with a single entity to provide both design
Page 9, Line 6and construction services for the construction, rehabilitation,
Page 9, Line 7alteration, or repair of a facility, a building or an associated structure, a civil works project, or a highway project; or
Page 9, Line 8(b) The period of limitation would expire within ten days
Page 9, Line 9after the date of filing and, because of the time constraint, the
Page 9, Line 10claimant has alleged that a certificate of review by a
Page 9, Line 11third-party architect or engineer could not be prepared. A
Page 9, Line 12claimant that does not file a certificate of review under this
Page 9, Line 13section shall supplement the complaint with a certificate of
Page 9, Line 14review within twenty-eight days after the filing of the
Page 9, Line 15complaint; except that a court may, on motion and for good
Page 9, Line 16cause, grant a claimant additional time to file the certificate of review.
Page 9, Line 17(4) A defendant that designates an architect or engineer
Page 9, Line 18as a nonparty at fault in accordance with section 13-21-111.5
Page 9, Line 19(3)(b) must file with the designation a certificate of review that
Page 9, Line 20complies with subsection (2) of this section and section 13-20-602.
Page 9, Line 21The defendant shall file a designation of nonparty of fault and
Page 9, Line 22certificate of review at least forty-five days prior to any trial
Page 9, Line 23or proceeding on the claim. If the defendant fails to file the
Page 10, Line 1certificate of review as required in this subsection (4), a court shall not consider the negligence or fault of the nonparty.
Page 10, Line 2(5) Subsections (2) to (4) of this section do not:
(a) Extend the applicable period of limitation or repose; or
Page 10, Line 3(b) Apply to a suit or action for the payment of fees arising out of the provision of professional services.
Page 10, Line 4(6) A person shall not assert a claim seeking damages in
Page 10, Line 5a construction defect action for housing built by a builder who
Page 10, Line 6was a participant in the multifamily construction incentive
Page 10, Line 7program at the time of the construction unless the claim has resulted in the following:
Page 10, Line 8(a) Damage that affects the functionality of a system or
Page 10, Line 9the safety of real or personal property, other than a condition that has not caused any substantial physical change;
Page 10, Line 10(b) Actual loss of the use of real or personal property;
(c) Actual bodily injury or wrongful death;
Page 10, Line 11(d) An unreasonable reduction in the capability of, or an
Page 10, Line 12actual failure of, a building component to perform an intended function or purpose; or
Page 10, Line 13(e) An unreasonable risk of bodily injury or death to, or
Page 10, Line 14a threat to the life, health, or safety of, the occupants of the residential property.
Page 10, Line 15(7) (a) For housing built by a builder participating in the
Page 10, Line 16program and sold on or after January 1, 2026, and except as
Page 10, Line 17provided in subsection (7)(b) of this section, a claimant must
Page 10, Line 18bring an action for damages for a claim based on the
Page 10, Line 19construction and filed pursuant to this part 8 not later than
Page 11, Line 1eight years after the substantial completion of the improvement
Page 11, Line 2in an action arising out of a defective or an unsafe condition of
Page 11, Line 3the real property or a deficiency in the construction or repair of the improvement.
Page 11, Line 4(b) (I) If the defendant is a construction professional who
Page 11, Line 5is not an architect or engineer and who has provided the
Page 11, Line 6claimant a written warranty for the residence that complies
Page 11, Line 7with subsection (1)(a) of this section, and if the claimant
Page 11, Line 8discovered or should have discovered the alleged defect or
Page 11, Line 9damage within the longest applicable warranty period, the
Page 11, Line 10claimant must bring the suit not later than six years after the substantial completion of the improvement.
Page 11, Line 11(II) If the defendant is a construction professional who is
Page 11, Line 12an architect or engineer, and the construction professional
Page 11, Line 13performed in a manner consistent with the degree of skill and
Page 11, Line 14care ordinarily exercised by members of the same profession
Page 11, Line 15currently practicing under the same or similar circumstances,
Page 11, Line 16the claimant must bring the suit not later than six years after the substantial completion of the improvement.
Page 11, Line 17(c) If a claim involves a defect or damage that is covered
Page 11, Line 18by the warranty described in subsection (7)(b) of this section,
Page 11, Line 19the claimant shall pursue all remedies available under the warranty process before bringing an action for damages.
Page 11, Line 20(d) Section 13-80-104 applies to the limitation of claims in this subsection (7).
Page 11, Line 21(8) (a) For housing in which the builder is a participant in
Page 11, Line 22the program, a construction professional who makes a
Page 12, Line 1reasonable offer pursuant to section 13-20-803.5 may be immune,
Page 12, Line 2in whole or in part, from an obligation, damage, loss, or liability
Page 12, Line 3under this part 8 related to or arising out of the construction
Page 12, Line 4defect, but only with respect to the portion of the claimant's
Page 12, Line 5damages, if any, the construction professional can demonstrate
Page 12, Line 6by a preponderance of the evidence were proximately caused or
Page 12, Line 7increased by an affirmative defense specified in subsections (8)(b) and (8)(c) of this section and not by the construction defect.
Page 12, Line 8(b) In addition to any other affirmative defense available
Page 12, Line 9under any other law, a construction professional is not liable
Page 12, Line 10for a damage or defect to the extent the professional can prove,
Page 12, Line 11as an affirmative defense, that the damage or defect was caused:
Page 12, Line 12(I) By a weather condition, earthquake, or human-caused
Page 12, Line 13event, such as war, terrorism, or vandalism, in excess of the
Page 12, Line 14design criteria expressed by the applicable building codes,
Page 12, Line 15regulations, and ordinances in effect at the time of original construction;
Page 12, Line 16(II) By a homeowner's unreasonable failure to timely mitigate damages as required in section 13-20-803.5 (1);
Page 12, Line 17(III) By the homeowner or the homeowner's agent,
Page 12, Line 18employee, or construction professional by virtue of their
Page 12, Line 19failure to follow the builder's or manufacturer's
Page 12, Line 20recommendations or to do commonly accepted homeowner
Page 12, Line 21maintenance obligations. In order to rely upon this defense as
Page 12, Line 22it relates to a construction professional's recommended
Page 12, Line 23maintenance schedule, the construction professional must show
Page 13, Line 1that the homeowner had written notice of these schedules and
Page 13, Line 2recommendations and that the recommendations and schedules were reasonable at the time they were issued.
Page 13, Line 3(IV) After sale or transfer of ownership to the claimant, by:
Page 13, Line 4(A) The homeowner's or homeowner's agent's alterations;
(B) Ordinary wear and tear;
Page 13, Line 5(C) Misuse of the structure or component;
(D) Abuse of the structure or component;
Page 13, Line 6(E) Neglect of the structure or component; or
Page 13, Line 7(F) The use of the structure or component for something other than the structure's or component's intended purpose.
Page 13, Line 8(c) A construction professional may assert an affirmative defense to the extent that:
Page 13, Line 9(I) The damage was caused by a particular violation
Page 13, Line 10covered by a valid release obtained by the construction
Page 13, Line 11professional, if the release is enforceable against the claimant,
Page 13, Line 12was executed with knowledge of the particular violation, and does not violate section 13-20-806 (7); or
Page 13, Line 13(II) The construction professional's repair completed
Page 13, Line 14pursuant to section 13-20-803.5 (3) was successful in correcting
Page 13, Line 15the particular violation and any damage resulting from the violation of the applicable standard.
Page 13, Line 16(9) Nothing in this section:
Page 13, Line 17(a) Affects the "Colorado Governmental Immunity Act", article 10 of title 24; or
Page 13, Line 18(b) Prohibits, limits, or impairs a contractual claim,
Page 14, Line 1counterclaim, cross-claim, or third-party claim that is not for
Page 14, Line 2damages or loss to, or the loss of use of, real or personal
Page 14, Line 3property or personal injury caused by a defect in the design or construction of an improvement to real property.
Page 14, Line 4SECTION 4. In Colorado Revised Statutes, 13-20-803.5, amend (1), (3), (7), and (12); and add(3.5), (3.7), (4.5), and (13) as follows:
Page 14, Line 513-20-803.5. Notice of claim process - duty to mitigate.
Page 14, Line 6(1) (a) No later than seventy-five days before filing an action against a
Page 14, Line 7construction professional, or no later than ninety days before filing the
Page 14, Line 8action in the case of a commercial property, a claimant shall send or
Page 14, Line 9deliver a written notice of claim to the construction professional by certified mail, return receipt requested, or by personal service.
Page 14, Line 10(b) Before filing a claim pursuant to this subsection (1)
Page 14, Line 11for the construction of housing for which a builder was a
Page 14, Line 12participant in the multifamily construction incentive program,
Page 14, Line 13a claimant shall mitigate the damage caused by the alleged
Page 14, Line 14construction defect. A claimant satisfies the duty to mitigate
Page 14, Line 15by taking reasonable action to prevent further damage from
Page 14, Line 16the construction defect. A claimant must certify in the complaint that the claimant has satisfied the duty to mitigate.
Page 14, Line 17(c) If the claimant and construction professional dispute
Page 14, Line 18whether the claimant has satisfied the duty to mitigate
Page 14, Line 19described in subsection (1)(b) of this section, the claimant may
Page 14, Line 20proceed with the action but does not recover any damages that
Page 14, Line 21the construction professional proves were caused by the claimant's unreasonable failure to mitigate.
Page 14, Line 22(d) A claimant does not breach the duty to mitigate if the
Page 15, Line 1cost to mitigate is unreasonable under the circumstances or was beyond the claimant's financial ability to perform.
Page 15, Line 2(3) (a) Within thirty days following the completion of the
Page 15, Line 3inspection process conducted pursuant to subsection (2) of this section,
Page 15, Line 4or within forty-five days following the completion of the inspection
Page 15, Line 5process in the case of a commercial property, a construction professional
Page 15, Line 6
mayPage 15, Line 7(I) An offer to settle the claim by:
(A) Payment of a sum certain;
or byPage 15, Line 8(B) Agreeing to remedy the claimed defect described in the notice of claim;
Page 15, Line 9(II) A written response that:
Page 15, Line 10(A) Identifies the standards that apply to the claimed defect's construction or performance; and
Page 15, Line 11(B) Explains why the claimed defect does not require repair; or
Page 15, Line 12(III) A written response that explains the construction
Page 15, Line 13professional's scope of work and why the claimed defect is not
Page 15, Line 14within the work and responsibility of the construction professional.
Page 15, Line 15(b) A written offer to remedy
theshallPage 15, Line 16include a report of the scope of the inspection, the findings and results of
Page 15, Line 17the inspection, a description of the additional construction work necessary
Page 15, Line 18to remedy the defect described in the notice of claim and all damage to
Page 15, Line 19the improvement to real property caused by the defect, and a timetable for
Page 15, Line 20the completion of the remedial construction work.
Page 16, Line 1(3.5) (a) By the earlier of when a construction
Page 16, Line 2professional, other than an architect or engineer, offers to
Page 16, Line 3settle a claim and of sixty days after a construction
Page 16, Line 4professional receives actual notice of claim, the construction
Page 16, Line 5professional shall provide the claimant with the following
Page 16, Line 6documents and information, to the extent the documents and
Page 16, Line 7information are within the construction professional's possession:
Page 16, Line 8(I) Copies of all plans, specifications, and soil reports related to the claim;
Page 16, Line 9(II) Maintenance and preventive maintenance recommendations related to the claim;
Page 16, Line 10(III) The name, last-known address, and scope of work of
Page 16, Line 11each construction professional who contracted to perform
Page 16, Line 12work or provide services and did perform work or provide services related to the claim;
Page 16, Line 13(IV) All documents related to the third-party inspection
Page 16, Line 14of the property and the name and last-known address of the inspector who performed the third-party inspection; and
Page 16, Line 15(V) Copies of each insurance policy purchased by the
Page 16, Line 16construction professional through the date of the notice of claim and from the earlier start date of:
Page 16, Line 17(A) The date the construction of the alleged defect was substantially completed; or
Page 16, Line 18(B) The date the construction professional substantially completed work on the alleged defect.
Page 16, Line 19(b) A construction professional may charge reasonable
Page 17, Line 1copying costs for the documents described in subsections(3.5)(a)(I), (3.5)(a)(II), (3.5)(a)(IV), and (3.5)(a)(V)of this section.
Page 17, Line 2(c) Failure to provide the identifying information
Page 17, Line 3required in subsection (3.5)(a)(III) of this section by the
Page 17, Line 4applicable deadline for designating a nonparty at fault bars the
Page 17, Line 5construction professional from designating the unidentified
Page 17, Line 6construction professional as a nonparty at fault under section
Page 17, Line 713-21-111.5 (3)(b) in a subsequent action. If the construction
Page 17, Line 8professional fails to provide the information required in
Page 17, Line 9subsection (3.5)(a)(I) of this section, the claimant need not
Page 17, Line 10comply with the certificate of review requirement in section 13-20-803.3 (2).
Page 17, Line 11(3.7) (a) By the earlier of when a construction
Page 17, Line 12professional who is an architect or engineer offers to settle a
Page 17, Line 13claim and of sixty days after a construction professional
Page 17, Line 14receives actual notice of claim, the architect or engineer shall
Page 17, Line 15provide the claimant with the following documents and
Page 17, Line 16information, to the extent the documents and information are within the architect's or engineer's possession:
Page 17, Line 17(I) Copies of all approved construction documents and
Page 17, Line 18specifications, including addendums issued during construction, prepared by the architect, engineer, or consultants;
Page 17, Line 19(II) The name, last-known address, and scope of work of
Page 17, Line 20each architect or engineer who performed work or provided
Page 17, Line 21services as a consultant related to the claim and on the claimant's property; and
Page 17, Line 22(III) Copies of each insurance policy purchased by the
Page 18, Line 1architects and engineers through the date of the notice of claim and from the earlier start date of:
Page 18, Line 2(A) The date the construction of the alleged defect was substantially completed; or
Page 18, Line 3(B) The date the architects and engineers substantially completed work related to the alleged defect.
Page 18, Line 4(b) An architect or engineer may charge reasonable
Page 18, Line 5copying costs for the documents described in subsection (3.7)(a) of this section.
Page 18, Line 6(4.5) (a) Within thirty days after the rejection of an offer
Page 18, Line 7made pursuant to subsection (3) of this section, a claimant shall
Page 18, Line 8provide a construction professional with a written proposal to
Page 18, Line 9have the construction defect repaired at the construction professional's expense or to settle the claim.
Page 18, Line 10(b) If the construction professional does not accept the
Page 18, Line 11proposal in writing within fifteen days after delivery of the proposal, the proposal is deemed to have been rejected.
Page 18, Line 12(c) If the construction professional accepts the
Page 18, Line 13claimant's proposal, the construction professional shall pay the
Page 18, Line 14claimant's reasonable attorney fees and costs incurred in investigating the defect and proposing the repair.
Page 18, Line 15(7) If an offer by a construction professional is made and accepted
Page 18, Line 16or if a proposal made by a claimant is accepted, and if thereafter the
Page 18, Line 17construction professional does not comply with
itsPage 18, Line 18or settle a claim for a construction defect or with the claimant's
Page 18, Line 19proposal, the claimant may file an action against the construction
Page 18, Line 20professional for claims arising out of the defect or damage described in the notice of claim without further notice.
Page 19, Line 1(12) (a) Except as provided in this section and section
Page 19, Line 213-20-806, a claimant shall not recover more than actual damages in an action.
Page 19, Line 3(b) If a claimant unreasonably rejects a reasonable
Page 19, Line 4written offer of settlement made pursuant to subsection (3) of
Page 19, Line 5this section and subsequently commences an action against the
Page 19, Line 6construction professional, the court may award attorney fees and costs to the construction professional.
Page 19, Line 7(c) If a construction professional fails to make a
Page 19, Line 8reasonable written offer of settlement pursuant to subsection
Page 19, Line 9(3) of this section, the limitations on damages and defenses to
Page 19, Line 10liability provided in sections 13-20-804 and 13-20-806 do not
Page 19, Line 11apply and the court may award attorney fees and costs to the claimant.
Page 19, Line 13(d) (I) A construction professional's written offer of
Page 19, Line 14settlement is reasonable, and a claimant's rejection of the offer
Page 19, Line 15is unreasonable, if the claimant recovers a final judgment in an
Page 19, Line 16amount that is less than the amount offered or the reasonable value of the repair offered by the construction professional.
Page 19, Line 17(II) A construction professional's written offer of
Page 19, Line 18settlement is unreasonable, and a claimant's rejection of the
Page 19, Line 19offer is reasonable, if the claimant recovers a final judgment in
Page 19, Line 20an amount that exceeds the amount offered or the reasonable value of the repair offered by the construction professional.
Page 19, Line 21(13) An insurer, as defined in section 10-1-102 (13) shall
Page 20, Line 1not cancel or deny a liability insurance policy issued to a
Page 20, Line 2construction professional based on the construction
Page 20, Line 3professional making an offer to repair or settle a construction
Page 20, Line 4defect claim pursuant to this section. Any settlement or repair agreement that affects coverage is subject to insurer approval.
Page 20, Line 5SECTION 5. In Colorado Revised Statutes, amend 13-20-805 as follows:
Page 20, Line 613-20-805. Tolling of statutes of limitation. (1) If a notice of
Page 20, Line 7claim is sent to a construction professional in accordance with section
Page 20, Line 813-20-803.5 within the time prescribed for the filing of an action under
Page 20, Line 9
anyPage 20, Line 10limitations or repose is tolled until sixty days after the completion of the notice of claim process described in section 13-20-803.5.
Page 20, Line 11(2) If an alleged construction defect is being mitigated
Page 20, Line 12pursuant to subsection 13-20-803.5, the statute of limitations or
Page 20, Line 13repose is tolled for the duration of the mitigation; except that
Page 20, Line 14the maximum length of tolling under this subsection (2) cannot exceed one year.
Page 20, Line 15(3) The tolling of the statute of limitations under
Page 20, Line 16subsection (1) or (2) of this section does not preclude the tolling
Page 20, Line 17of the statute of limitations or repose under the other subsection of this section.
Page 20, Line 19SECTION 6. In Colorado Revised Statutes, 38-33.3-303.5,
Page 20, Line 20amend (1)(d)(I)(A) and (1)(d)(III) introductory portion; and add (5) as follows:
Page 20, Line 2138-33.3-303.5. Construction defect actions - disclosure -
Page 21, Line 1approval by unit owners - definitions - exemptions. (1) (d) Approval
Page 21, Line 2by unit owners - procedures. (I) (A) Notwithstanding any provision of
Page 21, Line 3law or any requirement in the governing documents, the executive board
Page 21, Line 4
maytheonlyPage 21, Line 5authorized within the voting period by owners of units to which
aPage 21, Line 6
majorityPage 21, Line 7allocated.
SuchPage 21, Line 8with a construction defect action if the alleged construction defect
Page 21, Line 9pertains to a facility that is intended and used for nonresidential purposes
Page 21, Line 10and if the cost to repair the alleged defect does not exceed fifty thousand
Page 21, Line 11dollars.
SuchPage 21, Line 12with a construction defect action when the association is the contracting party for the performance of labor or purchase of services or materials.
Page 21, Line 13(III) Vote count - exclusions. For purposes of calculating the
Page 21, Line 14required
majorityPage 21, Line 15(5) An executive board that is successful under a
Page 21, Line 16construction defect claim shall first use monetary damages
Page 21, Line 17received pursuant to the claim to repair the construction defect.
Page 21, Line 18SECTION 7. Act subject to petition - effective date -
Page 21, Line 19applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 21, Line 20the expiration of the ninety-day period after final adjournment of the
Page 21, Line 21general assembly; except that, if a referendum petition is filed pursuant
Page 21, Line 22to section 1 (3) of article V of the state constitution against this act or an
Page 21, Line 23item, section, or part of this act within such period, then the act, item,
Page 21, Line 24section, or part will not take effect unless approved by the people at the
Page 22, Line 1general election to be held in November 2026 and, in such case, will take
Page 22, Line 2effect on the date of the official declaration of the vote thereon by the governor.
Page 22, Line 3(2) This act applies to construction defect claims brought on or after the applicable effective date of this act.