Colorado's Senate Bill 106: Protecting Construction Companies from Persistent Lawsuits Over Defects

The Construction Defect Action Reform Act will be modified due to the persistent lawsuits homeowners have filed against construction businesses regarding faults through Senate Bill 106. Before homeowners can file a complaint against their contractors, they must be under different circumstances.

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Modifying Construction Defect Action Reform Act

On Tuesday, Mar. 5, Senate Bill 106, also known as the Right to Remedy Construction Defects, was presented to the Local Government and Housing Committee of the Colorado Senate. This initiative aims to make the construction of multi-residential homes across the state less complicated and more appealing to potential buyers. Glass and glazing businesses stand to benefit from the news because it will lead to an increase in business, particularly in the residential sector, which the market has negatively hit due to high costs and low inventory.

Ken Gronbach, a demographer and president of KGC Direct, believes that the future's most significant housing and building market is on its way. This is because over 170 million people under 40 require homes. Gronbach noted that it would benefit the glass and glazing business, but only if it could handle the anticipated demand for its products.

Moreover, by establishing a right for a construction professional to settle a claim that has been made against them, Senate Bill 24-106 would establish the right for the construction professional to either undertake corrective work or hire another construction expert to perform the job. Others believe that it will make the process of litigation easier and will result in the development of cheaper housing in the state.

Senator Rachel Zenzinger, a Democrat from Arvada, stated that Senate Bill 24-106 would encourage new development while maintaining a balance between protecting homeowners. The legislation is directed primarily toward legal proceedings. It reportedly outlines several remediation options. These include the possibility that builders might offer to settle with homes outside of court, offer to correct the problem, and homeowners could choose a third party to come in and fix the issue at the builder's expense.

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Homeowner's Requirements Before Filing Complaint on their Constructors

A minimum of two-thirds of the members of a condominium community association are required to file a lawsuit against a constructor to file a claim formally. On the other hand, the measure would make it impossible for anyone to sue a construction business for damages if the company doesn't comply with building codes or standards unless the failure results in the following:

• There is actual damage to either real or personal property;

• Actual loss of the ability to use either real or personal property;

• Injury to the body or death by wrongful means; or

• The occupants are at risk of suffering bodily harm or death, or they are in danger of losing their lives, their health, or their safety.

Furthermore, those who support the measure have stated that it will make the process simpler and less expensive for home builders, resulting in more dwellings in a shorter time. State leaders, including Governor Jared Polis, have been advocating for this.

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