Bill introduced to give Colorado shortest statute of repose in U.S.

Yesterday, State Senator Ray Scott (R-Mesa County) introduced a bill to shorten Colorado’s already short statute of repose. If this bill passes, it will severely undermine the rights of Colorado homeowners.
Colorado already has one of the shortest construction defect statutes of repose in the United States. If a homeowner does not discover a defect within six years of a house’s completion, the homeowner may forfeit all legal rights to seek repairs. Senator Ray’s bill would cut this time in half and could preclude homeowners from obtaining any relief three years after a home is built. No other state in America has such a severe limit on homeowner rights.

In 2014, legislators considered a last-minute bill to restrict the ability of homeowner associations to obtain construction repairs for their members, but the bill died before reaching the floor for a vote. Some politicians have argued that Colorado's current laws make it difficult for developers to earn sufficient profits on low-priced homes, and that developers should be given immunity for defective work to encourage them to erect more cheap condominiums in their districts.

 
Senator Scott's bill, SB 15-091, is the first bill of this session to address this issue, but more are expected to follow in the coming months. The complete text is available online at the General Assembly's website.

Please contact The Witt Law Firm for more information on this subject or other construction law issues.

2014 Top Ten: Does Colorado Need Construction Defect Legislation to Spur Affordable Home Development?

One of top ten stories for the Construction Defect Journal in 2014 was the debate over whether Colorado needs new construction defect legislation to spur affordable home development.

Jesse Witt of The Witt Law Firm started the discussion with his article "Colorado Mayors Should Not Sacrifice Homeowners to Lure Condo Developers." Others followed with pieces advocating limits on homeowner association rights and discussing Lakewood's recent efforts to shield builders from liability for their errors.

Click here to read the full articles.

Affordable housing should not be filled with defects

Prime Time for Condos: Today's Denver Business Journal presents a feature on Colorado's hot market for condominiums and other forms of affordable housing. In several stories, reporter Molly Armbrister discusses how high demand for apartments and low construction of new condominium projects have put a premium on existing property.

Addressing the argument that lawsuits have made builders reluctant to develop multifamily housing, she quotes The Witt Law Firm's Jesse Witt, who said that both homeowner and builder advocates would like to see changes to Colorado's existing statutes. Current laws do little to prevent defective work and often leave consumers no choice but to pursue claims in court or binding arbitration if they want a builder to correct code violations and other mistakes.

Witt explained that lawsuits are often lengthy and inconvenient for homeowners, and that the gap in affordable housing is not something that anyone wants. "We want more affordable housing, but we don't want affordable housing filled with defects," Witt said in the article.

The Journal also quoted Witt in a second article that summarized Colorado's existing statutes and anticipated legislation in 2015.

Subscribers can read the full articles by clicking here, and printed copies are available at local newsstands.

Can Denver condominium developers learn from their counterparts in Seattle?

Concerns over construction defect liability has not hindered condominium development in Washington State. Instead of asking politicians to give them immunity from their own negligence, developers in Colorado might want to consider taking steps to avoid construction defects in the first place.

As a story in this week's Puget Sound Business Journal reports, some builders in Washington have been reluctant to bid on condominium projects because they fear lawsuits over construction defects. Many others have quickly moved in to meet the demand for new housing, however. One company, Lowe Enterprises, has taken a common sense approach to the risk:

"The development team is trying to head off construction defect claims by planning and documenting with photos their work. This way if a lawyer questions the wiring and plumbing behind the walls, Lowe will be able to say, 'Look, this is what we have done,' and here's evidence that everything was properly installed."

Coupled with adequate quality control, this simple method is an excellent way to avoid defects and litigation. Indeed, we at The Witt Law Firm have been recommending a similar process to our builder clients to reduce risk on construction projects in Colorado.

Now, if the Broncos can just figure out a way to beat the Seahawks, all will be well in the world.

Click here to read the full text of the article.