Colorado bill would limit when homeowners can sue construction companies

DENVER (KDVR) — A bill that would make it harder for homeowners to sue construction companies for defects was heard in a Colorado Senate committee on Tuesday.

Senate Bill 106, or the Right to Remedy Construction Defects bill, was presented to the Senate’s Local Government and Housing committee on Tuesday, introduced by Democrat Sens. Rachel Zenzinger, who represents Adams and Jefferson counties, and James Coleman, who represents Denver.

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The measure as introduced would create several new procedures for bringing a lawsuit for a construction defect. First, it would allow a construction worker to remedy any claims made against them before being truly sued. The construction company would be allowed to solve the issue by doing work to remedy the defect or hiring someone else to perform the work.

The measure would prevent anyone from seeking damages from a construction company that fails to comply with building codes or industry standards unless the failure results in:

• Actual damage to real or personal property;

• Actual loss of the use of real or personal property;

• Bodily injury or wrongful death; or

• A risk of bodily injury or death to, or a threat to the life, health, or safety of, the occupants.

Additionally, the actual property damage must be the result of a building code violation and cause an imminent risk of injury or death or threat to life, health or safety.

The bill has sponsors from both parties and supporters say it will make the process cheaper and easier for home builders, which would help create more housing, faster. That’s something state leaders have pushed for, including Gov. Jared Polis.

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In December, the governor laid out a “road map” to making housing more affordable that included measures like reducing regulations and removing red tape to allow for further development.

However, bill opposition members say this would lead to bad construction and would harm consumers.

“We recognize that this is a highly complex issue,” said one person during the bill’s testimony. “And that this bill will not solve all of our housing affordability challenges, but we believe it’s an important first step.”

“The current language of the bill would significantly strip homeowners and HOAs of their rights to pursue construction defect claims in this state,” said another person during the bill’s testimony. “I also don’t believe it accomplishes the goals that are stated as the intended goals.”

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