Construction Defect Demand Letter - Colorado

CONSTRUCTION DEFECT DEMAND LETTER

STATE OF COLORADO

NOTICE PURSUANT TO COLORADO CONSTRUCTION DEFECT ACTION REFORM ACT (CDARA)

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND REGULAR FIRST-CLASS MAIL

[DATE]

[CONTRACTOR/BUILDER NAME]
[ADDRESS]
[CITY, STATE ZIP]
Contractor License/Registration No. (if applicable): [NUMBER]

Re: NOTICE OF CLAIM PURSUANT TO C.R.S. SECTION 13-20-803.5
Property Address: [PROPERTY ADDRESS]
Owner: [OWNER NAME]
Original Contract Date: [DATE]
Substantial Completion Date: [DATE]

Dear Sir or Madam:

This firm represents [OWNER NAME] ("Owner" or "Claimant") regarding construction defects at the above-referenced property. This letter constitutes formal Notice of Claim pursuant to the Colorado Construction Defect Action Reform Act (CDARA), Colorado Revised Statutes Sections 13-20-801 through 13-20-807, providing you with the statutory opportunity to inspect, offer to repair, and/or settle this claim before litigation is commenced.

THIS IS A NOTICE OF CLAIM REQUIRED UNDER COLORADO LAW. YOUR TIMELY RESPONSE IS REQUIRED WITHIN SEVENTY-FIVE (75) DAYS.

I. COLORADO-SPECIFIC LEGAL FRAMEWORK

A. Construction Defect Action Reform Act (CDARA)

This notice is provided pursuant to C.R.S. Sections 13-20-801 to 13-20-807 (CDARA), which establishes mandatory pre-litigation procedures:

Key Requirements:

• C.R.S. Section 13-20-803.5(1)(a): Claimant must send a written Notice of Claim at least 75 days before filing (residential), or 90 days before filing in the case of commercial property
• C.R.S. Section 13-20-802.5(5): The Notice of Claim must describe the claim in reasonable detail sufficient to determine the general nature of the defect, including a general description of the type and location of the construction alleged to be defective and any damages claimed
• C.R.S. Section 13-20-803.5(2): The construction professional may request access to inspect; the inspection must be completed within 30 days of service of the notice
• C.R.S. Section 13-20-803.5(3): Within 30 days after completion of the inspection (residential), or 45 days (commercial), the construction professional may send an offer to settle by payment of a sum certain or by agreeing to remedy the defect
• C.R.S. Section 13-20-803.5(4): Unless the claimant accepts an offer in writing within 15 days of delivery, the offer is deemed rejected
• C.R.S. Section 13-20-803.5(3.5): For claims brought on or after August 6, 2025 (per HB 25-1272), by the earlier of an offer to settle or 60 days after actual notice of claim, a construction professional (other than an architect or engineer) must provide the claimant with plans, specifications, and soil reports; maintenance recommendations; the identity and scope of work of each contributing construction professional; third-party inspection documents; and copies of related insurance policies. Architects and engineers have parallel obligations under Section 13-20-803.5(3.7)

B. Definitions Under CDARA

• "Construction defect": CDARA does not separately define this term. The governing statute of limitations and repose, C.R.S. Section 13-80-104(1)(c), reaches any "deficiency in the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property," and injury to real or personal property or to a person caused by such a deficiency.
• "Construction professional": An architect, contractor, subcontractor, developer, builder, builder vendor, engineer, or inspector performing or furnishing the design, supervision, inspection, construction, or observation of construction of any improvement to real property (C.R.S. Section 13-20-802.5(4)).

C. Statute of Limitations

D. Statute of Repose

C.R.S. Section 13-80-104 establishes:

• General repose: No action may be brought more than 6 years after the substantial completion of the improvement to real property (Section 13-80-104(1)(a)).
• Extension: If the claim for relief arises during the fifth or sixth year after substantial completion, the action may be brought within 2 years after the date the claim arises (Section 13-80-104(2)).
• Maximum: The extension yields an outside deadline of 8 years after substantial completion.

E. Implied Warranties in Colorado

Colorado recognizes:

1. Implied Warranty of Habitability: Builders warrant new homes are fit for habitation. Carpenter v. Donohoe (Colo. 1964), 388 P.2d 399.

2. Implied Warranty of Proper Workmanship: Construction must be performed in a workmanlike manner.

F. Licensing and Registration

Colorado has no statewide registration or licensing requirement for general contractors; general-contractor licensing is imposed at the local (municipal or county) level, and requirements vary by jurisdiction. Certain building trades are state-licensed — for example, electricians under Title 12, Article 115, C.R.S. (the State Electrical Board), and plumbers under Title 12, Article 155, C.R.S. Confirm the applicable local licensing/registration requirement for the trade and jurisdiction at issue.

II. PROPERTY AND PROJECT INFORMATION

A. Property Description

B. Project Information

C. Parties Involved

Construction Professional(s):

• Name: [NAME]
• Registration Number: [NUMBER]
• Address: [ADDRESS]
• Contact: [PHONE/EMAIL]

Subcontractors:

III. DESCRIPTION OF DEFECTS

Pursuant to the Notice of Claim content standard in C.R.S. Section 13-20-802.5(5), the following describes each claimed construction defect in reasonable detail:

DEFECT #1: [TITLE - e.g., FOUNDATION CRACKING]

Location: [Specific location within the property]

Description: [Detailed description of the defect, including how it manifests, when discovered, and progression]

Building Components Affected:
☐ Foundation/Slab ☐ Framing ☐ Roofing ☐ Exterior walls/Siding ☐ Windows/Doors
☐ Plumbing ☐ Electrical ☐ HVAC ☐ Insulation ☐ Drywall/Interior finishes
☐ Flooring ☐ Waterproofing ☐ Drainage ☐ Other: [SPECIFY]

Evidence of Defect:
[Describe available evidence supporting the general nature, type, and location of the defect per C.R.S. Section 13-20-802.5(5)]

Standards Violated:
☐ Colorado Residential Code
☐ International Residential Code (as adopted)
☐ Manufacturer's Installation Instructions
☐ Industry Standards
☐ Contract Specifications

Date First Observed: [DATE]

Estimated Cost to Repair: $[AMOUNT]

DEFECT #2: [TITLE]

[REPEAT FORMAT ABOVE FOR EACH DEFECT]

IV. SUMMARY OF DEFECTS AND DAMAGES

V. LEGAL BASIS FOR CLAIMS

A. Breach of Contract

You failed to perform construction in accordance with contract terms and applicable building codes.

B. Breach of Express Warranty

You provided express warranties which you have breached.

C. Breach of Implied Warranty of Habitability

Under Colorado law, builders impliedly warrant that new homes are fit for habitation. Carpenter v. Donohoe, 388 P.2d 399 (Colo. 1964).

D. Breach of Implied Warranty of Proper Workmanship

Construction must be performed in a workmanlike manner.

E. Negligence

You owed a duty of care and breached that duty, causing damages.

F. Violation of Building Codes

The construction violates the Colorado Residential Code.

VI. CDARA NOTICE REQUIREMENTS

A. Your Rights Under CDARA

Pursuant to C.R.S. Section 13-20-803.5, upon receipt of this Notice of Claim:

1. Inspection Right: Upon written request, you may inspect the property; the inspection must be completed within 30 days of service of this notice (C.R.S. Section 13-20-803.5(2))
2. Offer to Settle: Within 30 days after completion of the inspection (residential), or 45 days (commercial), you may send an offer to settle by payment of a sum certain or by agreeing to remedy the defect, with the report and timetable required by statute (C.R.S. Section 13-20-803.5(3)). Unless the claimant accepts an offer in writing within 15 days, it is deemed rejected (C.R.S. Section 13-20-803.5(4))

B. Required Response Options

Your response must include one of the following:

1. Offer to Remedy: Written offer to remedy the construction defect
2. Offer to Settle: Monetary settlement offer
3. Dispute: Written statement disputing the claim with reasons and supporting documentation

C. Response Timeline

D. Consequences of No Offer or Rejected Offer

Per C.R.S. Section 13-20-803.5(6), if no offer is made by the construction professional, or if the claimant rejects an offer, the claimant may bring an action for the construction defect claim described in this notice — unless the parties have contractually agreed to a mediation procedure, which must first be satisfied. An action commenced without complying with the notice-of-claim process is stayed until compliance (Section 13-20-803.5(9)).

VII. DEMAND FOR INSPECTION ACCESS

We offer access for inspection per C.R.S. Section 13-20-803.5(2). To schedule:

1. Contact our office in writing within 30 days
2. Propose inspection dates during reasonable hours
3. Identify all persons who will attend
4. Identify any experts participating
5. Describe any destructive testing (requires advance approval)

Contact Information:
[LAW FIRM NAME]
[ADDRESS]
[PHONE]
[EMAIL]

VIII. PRESERVATION OF EVIDENCE

Preserve all documents and materials relating to construction, including:

• All contracts and subcontracts
• Plans, specifications, and drawings
• Inspection reports and quality control records
• All correspondence
• Construction photographs
• Daily logs and progress reports
• Warranties and insurance documents
• Soils and geotechnical reports

Spoliation Warning: Failure to preserve evidence may result in adverse consequences.

IX. SETTLEMENT DEMAND

To resolve this matter without litigation:

Option A - Repair by Contractor:

1. Complete repair of all defects within [NUMBER] days
2. All repairs warranted for [NUMBER] years
3. Payment of investigation costs: $[AMOUNT]
4. Payment of attorney's fees: $[AMOUNT]

Option B - Monetary Settlement:
Payment of $[AMOUNT] within 30 days.

X. CONCLUSION

Please respond within 75 days as required by C.R.S. Section 13-20-803.5. Failure to respond will result in litigation.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
Colorado Bar No. [NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [OWNER NAME]

ENCLOSURES:
☐ Photographs of defects
☐ Expert report(s)
☐ Repair estimates
☐ Copy of construction contract

cc: [OWNER NAME]
[INSURANCE CARRIER]
Colorado Division of Real Estate (if applicable)

COLORADO-SPECIFIC PRACTICE NOTES

CDARA (C.R.S. Sections 13-20-801 to 13-20-807):

• 75-day pre-suit notice required (residential); 90 days for commercial property — Sec. 13-20-803.5(1)(a)
• Inspection must be completed within 30 days of service of the notice — Sec. 13-20-803.5(2)
• The construction professional may make an offer within 30 days after inspection (residential) / 45 days (commercial) — Sec. 13-20-803.5(3)
• Claimant must certify satisfaction of the duty to mitigate the defect; damages caused by an unreasonable failure to mitigate are not recoverable — Sec. 13-20-803.5(1)(b)–(d)
• Claimant recovery is generally capped at actual damages (Sec. 13-20-802.5(2), Sec. 13-20-803.5(12))
• Failure to follow the notice-of-claim procedures results in a stay of any action — Sec. 13-20-803.5(9)

HOA / Common-Interest-Community Construction Defect Claims (updated by HB 25-1272, eff. 2026-01-01):

• Special requirements for association claims under C.R.S. Section 38-33.3-303.5 and the "Colorado American Dream Act" (HB 25-1272, 2025)
• The executive board must give unit owners written notice and hold a meeting before commencing a construction defect action
• The board must now obtain approval from owners of at least 65% of the votes in the association (increased from a simple majority) before initiating a claim
• Any net damages or proceeds recovered must first be used to repair the alleged construction defects

Damage Limitations:

• CDARA limits recovery to actual damages in most circumstances (C.R.S. Sections 13-20-802.5(2), 13-20-803.5(12), 13-20-806)
• Consequential damages may be limited by contract
• Economic loss doctrine may bar tort claims where the duty arises solely from contract (BRW, Inc. v. Dufficy & Sons, Inc. (Colo. 2004))

Expert Requirements:

• Expert testimony typically required for complex defect claims
• Consider early expert involvement

Common Colorado Defects:

• Foundation issues (expansive soils)
• Water intrusion (snow/ice)
• HVAC adequacy for altitude
• Deck and balcony defects
• Stucco failures

This template is for informational purposes only. Consult a licensed Colorado attorney before use.