The Politics Around Construction Defect Law

Construction defect law in Colorado has been a polarizing issue for decades. In 2001, the Colorado Construction Defect Action Reform Act (CDARA) was passed to address a perceived crisis in the Colorado construction industry caused by a surge in litigation arising from construction defects. The law had several key provisions. It prescribed a process for claimants to notify contractors of claims, it set a statute of repose (i.e. a strict time limit during which a claimant can file a construction defect action), and it imposed certain caps on damages.

For the last several years, altering CDARA has been a political third rail. The last major change happened in 2017. But as housing costs continue to rise, Colorado lawmakers recently tried again. In February 2024, a group of state senators introduced Senate Bill 106, which, they claimed, would reduce the number of lawsuits arising from construction defects by narrowing the time period during which such suits could be