Frequently Asked Questions.
Colorado Construction Defect Law Frequently Asked Questions.
Answers to the questions Colorado homeowners, HOA boards, and property owners ask us most.
Colorado construction defect law is complex, and most homeowners and HOA board members have never navigated it before. The questions on this page represent the most common concerns we hear from Colorado property owners at the very beginning of their journey before they know whether they have a claim, before they understand what the process looks like, and before they know what their legal rights actually are.
Hearn & Fleener has spent over 40 years answering these questions for Colorado communities and property owners. We have provided the most thorough and accurate answers we can below. If your specific situation is not covered here, or if reading these answers raises new questions for you, we encourage you to contact us directly. Our initial consultation is always free, always confidential, and comes with no obligation of any kind.
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A construction defect is any component of a home, building, or community that was not built or designed the way it was supposed to be. That means anything that falls short of the approved plans, applicable building codes, manufacturer's installation guidelines, or the basic standards that any qualified contractor in Colorado is expected to meet.
Construction defects come in many forms. Some are visible from the moment you move in — a roof that leaks, windows that will not seal, or a foundation that is already cracking. Others stay hidden for years behind walls and beneath floors, quietly causing damage until the problem becomes impossible to ignore. Common examples include foundation movement caused by Colorado's expansive clay soils, improper roofing and flashing installation, defective exterior cladding systems, balconies and decks that lack proper waterproofing, and structural framing that was not built to code.
You do not need to know for certain whether what you are seeing qualifies as a defect before contacting us. That is exactly what our free inspection is designed to determine.
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Construction defects can present in many ways, and some of the most serious are not immediately visible. Common signs include significant stucco or exterior cladding cracks, window and door leaks, interior drywall cracking in patterned formations, cracked or deteriorating concrete flatwork, dry rot in decking or framing, missing or inadequate insulation, poor site drainage, standing water near foundations, and visible soil movement or foundation settlement.
In Colorado, foundation cracking and heaving caused by expansive clay soils is one of the most frequently encountered defect types and one that is often misattributed to normal settling by builders who want to avoid accountability. If your community or home is experiencing any of these issues, contact us for a free evaluation before drawing any conclusions.
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Colorado homeowners, homeowner associations, and property owners must file a construction defect lawsuit within legally prescribed time periods defined by two separate deadlines — the statute of limitations and the statute of repose.
The statute of limitations gives your community two years from the date a defect or associated damage is discovered, or reasonably should have been discovered, to file a claim. The statute of repose sets an absolute outer boundary: no construction defect claim can be brought more than six years after the substantial completion of the construction, regardless of whether the defect was visible or hidden. If a defect is discovered in the fifth or sixth year, this window can be extended to eight years in some circumstances.
These deadlines are among the shortest in the country. Missing them means permanently losing your right to pursue the builder, regardless of how clear the liability may be. We strongly recommend contacting an attorney as soon as you suspect a problem rather than waiting to gather more evidence.
These time frames are some of the shortest in the country. Therefore, we highly recommend consulting with an attorney to ensure you are protected and that your time to file a claim will not lapse.
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The statute of repose is the absolute outer deadline for filing a Colorado construction defect claim. In Colorado, you generally have six years from the date your property was substantially completed to file a claim. If a defect is discovered in the fifth or sixth year, the window may be extended to eight years in some circumstances. Once this deadline passes, your community permanently loses its right to pursue the builder, regardless of how serious the defect may be. This is why early action matters so much.
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The Construction Defect Action Reform Act, commonly known as CDARA, is the Colorado law that governs how construction defect claims are handled from start to finish. Among its key requirements, CDARA mandates that a property owner or HOA send a formal Notice of Claim to the builder before filing a lawsuit. Once that notice is delivered, the builder has a specific window of time to inspect the property and respond — either with an offer to repair the defects, a monetary settlement offer, or a denial of liability.
Understanding CDARA's procedural requirements is essential to protecting your community's rights. Failing to follow them correctly can jeopardize an otherwise valid claim. Our attorneys have navigated CDARA on behalf of hundreds of Colorado communities and know exactly how to use its framework to your advantage.
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You can contact Hearn & Fleener for an onsite inspection, meeting and multi-phase investigation concerning a potential construction defect lawsuit at no cost. We are always available to provide you with a free and confidential consultation. Contact us today, before its too late!
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The honest answer is that you may not know until a qualified legal and technical team evaluates your property. What looks like routine wear and tear is sometimes the surface symptom of a serious underlying defect, and what seems like a major problem is occasionally outside the scope of a viable legal claim. The only reliable way to find out is through a proper investigation.
Hearn & Fleener offers a complete, no-cost, no-obligation on-site inspection, legal research review, and written report for Colorado property owners and HOA communities. We will give you a clear, honest assessment of what we find and what your legal options are. We strongly encourage you to reach out before Colorado's statute of limitations or statute of repose deadlines pass because once those windows close, your community's right to recover is gone permanently.
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Colorado's Front Range sits atop some of the most expansive clay soils in the United States, a type of soil geologists call bentonite. Bentonite clay swells dramatically when it absorbs water and shrinks just as dramatically when it dries out. This constant movement exerts enormous pressure on any foundation built above it. When a builder fails to properly engineer a foundation for these conditions by not adequately removing or treating the expansive soil, not correctly floating basement walls, or not managing site drainage to control moisture levels, the result is foundation heaving, cracked slabs, bowed walls, and structural shifting that compounds over time. Expansive soil damage is one of the most common and costly construction defect types we handle in Colorado.
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New Colorado legislation (House Bill 25-1272) introduced significant changes to the construction defect landscape beginning January 1, 2026. Under this law, certain builders may opt into a voluntary program called the Mandatory Claims and Insurance Program, which alters the types of damages that can be recovered in a construction defect claim for properties covered under that program. If your community's purchase contracts were signed after January 1, 2026, or if your builder has opted into this program, the rules governing your claim may be materially different from those that applied previously. It is more important than ever to have an experienced Colorado construction defect attorney review your specific contracts and governing documents before drawing any conclusions about your community's legal options.
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In Colorado, the Homeowner Protection Act prohibits builders from requiring residential homeowners to waive their rights to a jury trial or their rights under CDARA as a condition of purchase. Any contract clause that attempts to strip you of these protections is generally considered void and unenforceable under Colorado law. If you have questions about whether your purchase contract limits your legal options, our attorneys can review it as part of our free initial consultation.
Questions about the Construction Defect Claims Process.
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At Hearn & Fleener, we work exclusively on a contingency fee basis, which means you pay nothing upfront and nothing out of pocket at any point during the process. We advance all engineering, expert, and legal costs ourselves. You only pay us if and when your community or property recovers funds through a settlement or verdict. If we do not recover, you owe us nothing. This structure ensures that every Colorado property owner and HOA board has access to the same quality of legal representation regardless of the size of their reserves or the scale of their claim.
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The timeline for a Colorado construction defect case varies significantly depending on the complexity of the defects, the number of responsible parties, and whether the case resolves through settlement or proceeds to trial. Many of our cases resolve within 18 to 24 months. More complex cases involving multiple phases of construction, dozens of subcontractors, or disputed liability can take longer. Cases that proceed to trial typically take longer than those that settle. We provide our clients with a realistic timeline assessment during the Phase 4 report and presentation, and we keep every client updated on the progress of their case throughout the process.
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While an HOA board technically has the legal authority to pursue a construction defect claim without an attorney, doing so effectively is extraordinarily difficult. Construction defect litigation in Colorado involves complex procedural requirements under CDARA, strict filing deadlines, forensic investigation, expert testimony, insurance coverage analysis, and in many cases multi-party litigation involving dozens of defendants. Attempting to navigate this process without specialized legal counsel puts your community at a significant disadvantage against builders and their legal teams. Hearn & Fleener handles every aspect of the process on your behalf at no upfront cost, so there is no financial reason for an HOA board to pursue a claim without experienced legal representation.
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One of the most common concerns HOA boards and property managers have is how a construction defect claim will affect their community during the litigation process. In our experience, the impact on day-to-day community life is minimal. The claims process primarily involves legal and forensic activities that occur largely outside the community, including document review, expert inspections, and negotiations with the builder's legal team. Where physical inspections of individual units or common areas are required, we coordinate those activities carefully to minimize disruption. Most importantly, the funds needed for repairs are not available until the case resolves but in many cases we can help communities prioritize urgent triage repairs using existing reserves while the claim proceeds.
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Yes, in many cases you can still pursue a claim even if your original builder or developer has gone out of business. Construction defect claims can often be pursued against the builder's insurance carriers even after the company itself has dissolved, and claims can also be brought against subcontractors, design professionals, and other parties who contributed to the defects and who maintain their own insurance coverage. Additionally, our Phase 3 legal research process specifically investigates the financial standing and insurance coverage of every responsible party before we recommend pursuing a claim, so our clients always have a clear picture of who can actually pay for the repairs before proceeding.
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The vast majority of Colorado construction defect cases resolve through negotiated settlements rather than jury verdicts. A settlement is a voluntary agreement between your community and the responsible parties, typically reached through mediation or direct negotiation, in which the defendants agree to pay an agreed upon amount to fund your community's repairs. A jury verdict is the outcome of a trial, where a jury decides the amount the defendants must pay after hearing the full presentation of evidence from both sides.
Hearn & Fleener is fully prepared to take cases to trial when settlement offers are inadequate. Our willingness to litigate aggressively when necessary is one of the primary reasons builders settle our cases for more than they offer communities represented by less experienced firms. Our landmark $6 million jury verdict for the Vallagio North Association is a direct example of what we are able to achieve at trial when a builder refuses to make a fair offer.
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Colorado has some of the highest rates of construction defect claims in the country, and there are specific reasons for that. The state's expansive bentonite clay soils, which are found extensively across the Front Range from Fort Collins to Colorado Springs create foundation challenges that builders in other states simply do not face. Colorado's dramatic climate, with intense UV exposure, heavy snow loads, dramatic freeze-thaw cycles, and high winds, places extraordinary stress on building envelopes, roofing systems, and exterior cladding. And Colorado's rapid growth over the past two decades has created a construction market where accelerated build timelines and competitive cost pressures have contributed to widespread workmanship failures across both residential and commercial construction.
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Yes. Colorado law provides specific protections for HOA boards that authorize construction defect claims on behalf of their communities. The HOA board has a fiduciary duty to its residents to protect the financial health and physical integrity of the community, which includes pursuing legitimate construction defect claims. CDARA and related Colorado statutes provide a structured process for HOA boards to authorize and pursue claims, and the Homeowner Protection Act protects individual homeowners from being forced to waive their rights under that process. Hearn & Fleener works directly with HOA boards to ensure that every step of the authorization and claims process is handled correctly under Colorado law.
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This is one of the most important distinctions in Colorado construction defect law. Normal wear and tear refers to the gradual deterioration of building components over time through ordinary use, things like fading paint, worn carpet, or minor surface weathering. A construction defect, by contrast, refers to a failure that results from improper design, substandard materials, or faulty workmanship, something that should not have happened if the builder had met the applicable standards.
The distinction can sometimes be subtle, and builders frequently try to characterize legitimate defects as normal wear and tear to avoid accountability. This is exactly why an independent forensic investigation is so important. Our team of specialized engineers and building envelope experts is experienced in distinguishing between defects and normal deterioration, and in documenting that distinction in a way that holds up in litigation.
Colorado-Specific Construction Defect Questions.
If reading these FAQs has raised new questions about your specific situation, or if you suspect your community or property may have a valid construction defect claim, contact Hearn & Fleener today.
Colorado's filing deadlines are strict, and the sooner you reach out, the more options your community will have. Our initial consultation is free, confidential, and comes with no obligation of any kind.