Being scammed by a construction contractor is one of the most frustrating experiences a homeowner can face. You've paid good money for work that was either done poorly, never completed, or never started at all. The natural question is: can you get your money back?
The answer depends on several factors, but Colorado law does provide multiple avenues for homeowners to recover their losses from construction scammers. Let's explore your options.
Understanding Construction Scams vs. Poor Workmanship
Before diving into recovery options, it's important to distinguish between different types of contractor problems. A construction "scam" typically involves intentional deception or fraud, such as:
Taking payment upfront and disappearing without doing any work
Deliberately using substandard materials while charging for premium ones
Billing for work that was never performed
Misrepresenting credentials, licenses, or experience
Knowingly providing false estimates or timelines
This differs from simple poor workmanship or contract disputes, though the legal remedies may overlap.
Legal Paths to Recovery
1. Colorado Consumer Protection Act (CCPA)
The Colorado Consumer Protection Act is one of the most powerful tools available to homeowners dealing with construction scams. Under Colorado law, many deceptive practices common in construction scams are specifically prohibited, including representing that services are of a particular standard, quality, or grade when they are not, failing to disclose material information about services, and engaging in deceptive trade practices in the course of business.
To succeed under the CCPA, you must prove that the defendant engaged in a deceptive trade practice; the deceptive trade practice occurred in the course of defendant's business, vocation, or occupation; the deceptive trade practice significantly impacted the public as actual or potential consumers of the defendant's goods, services, or property; the plaintiff was an actual or potential consumer of the defendant's goods, services or property or was injured in the course of their business or occupation as a result of the deceptive trade practice; and the deceptive trade practice caused actual damages or losses to the plaintiff. CJI-Civil 29:1.
Why the CCPA Matters for Recovery
If you can prove a CCPA violation, the law provides powerful remedies. Where actual damages have been proven, you're entitled to the greater of your actual damages or $500, plus reasonable attorney fees. CJI-Civil 29:5. More importantly, if you can prove by clear and convincing evidence that the contractor engaged in "bad faith conduct" (fraudulent, willful, knowing, or intentional conduct), you may be awarded treble damages—three times your actual losses. CJI-Civil 29:6.
For construction professionals, there's a cap of $250,000 on treble damages and attorney fees combined under C.R.S. § 13-20-806(3). While this might seem limiting, it still represents substantial recovery potential for most homeowners.
2. Civil Theft Claims
Colorado's civil theft statute allows you to sue contractors who have essentially stolen from you. Under C.R.S. § 18-4-401, a person commits theft when they knowingly obtain, retain, or exercise control over anything of value of another without authorization or by threat or deception, with intent to permanently deprive the other person of the use or benefit of the thing of value.
To prove civil theft, the plaintiff must prove by preponderance of evidence: (1) plaintiff owned/possessed/had ownership interest in the thing of value; (2) defendant knowingly without authorization/by threat/by deception obtained/retained/exercised control over plaintiff's thing of value; and (3) defendant did so with intent to permanently deprive plaintiff of use or benefit. CJI-Civil 32:4.
Civil theft claims can be particularly effective against contractors who take payment and disappear, or who deliberately misrepresent what they're providing. Like CCPA claims, successful civil theft claims can result in treble damages and attorney fees.
3. Fraud Claims
Traditional fraud claims remain another avenue for recovery. For a deceit claim based on fraud, plaintiff must prove by preponderance of evidence: (1) defendant made false representation of past or present fact; (2) fact was material; (3) defendant knew representation was false or was aware defendant did not know if true or false; (4) defendant intended plaintiff would rely on representation; (5) plaintiff relied on representation; (6) plaintiff's reliance was justified; and (7) reliance caused injuries/damages/losses to plaintiff. CJI-Civil 19:1.
Fraud claims can be powerful because they may entitle you to punitive damages beyond your actual losses. However, they require proving the contractor's intent to deceive, which can be challenging without clear evidence.
4. Breach of Contract
Even in scam situations, basic contract law applies. If a contractor fails to perform as promised, you may be entitled to:
Refund of payments made for unperformed work
Cost to complete the work properly (often called "cost of completion" damages)
Difference in value between what was promised and what was delivered
Special Considerations in Colorado
Construction Defect Action Reform Act (CDARA)
Colorado's construction defect laws, including CDARA, generally limit recovery to "actual damages"—essentially the cost to fix problems or the difference in property value. However, these limitations don't necessarily apply to clear fraud or theft situations, and they include exceptions for cases involving violations of the Consumer Protection Act.
Licensing Requirements
Unlike many states, Colorado does not have a single, statewide licensing requirement for general contractors. Instead, contractor licensing is typically handled at the local (city or county) level, and requirements can vary significantly depending on where the work is performed.
That said, licensing and registration issues can still play an important role in construction scam cases.
If a contractor:
Performs work in a jurisdiction that requires a license but does not have one
Misrepresents that they are licensed or qualified to perform certain work
Performs specialized work (such as electrical or plumbing) without the required state license
those facts can support claims for fraud, negligence, and violations of the Colorado Consumer Protection Act.
In addition, certain trades—such as electrical and plumbing work—are regulated at the state level. Performing this work without proper licensure, or in violation of applicable codes, may constitute a deceptive trade practice in some circumstances, particularly where the conduct is knowing or intentional.
From a practical standpoint, lack of proper licensing or registration is often powerful evidence that:
The contractor was not qualified to perform the work
Representations made to the homeowner were false or misleading
The contractor was operating outside legal requirements
While a licensing violation alone does not automatically entitle a homeowner to recover damages, it can significantly strengthen other claims—especially under the Consumer Protection Act or fraud theories.
Trust Fund Requirements
Colorado law requires contractors to hold certain client funds in trust for paying subcontractors and suppliers. All funds disbursed to any contractor or subcontractor under any building, construction, or remodeling contract must be held in trust for the payment of subcontractors, laborers, or material suppliers. Misusing these funds may constitute violations that can strengthen your legal claims and create additional grounds for recovery.
Practical Steps for Recovery
1. Document Everything
Gather all contracts, receipts, communications, photos, and other evidence. This documentation will be crucial regardless of which legal theory you pursue.
2. Act Quickly
Different claims have different time limits. CCPA claims must generally be filed within three years, while other claims may have shorter periods. Don't delay in seeking legal advice.
3. Consider Multiple Claims
Don't limit yourself to one legal theory. Many situations involve overlapping violations that can be pursued simultaneously, though you can't recover twice for the same damages.
4. Understand Practical Limitations
Even if you win a lawsuit, collecting money from a scammer can be challenging. Some contractors operate with minimal assets or may declare bankruptcy. However, successful claims often lead to settlements even before trial.
What You Can Realistically Expect to Recover
The amount you can recover depends on several factors:
Actual Damages: At minimum, you're typically entitled to recover what you paid for work that wasn't properly performed, plus the cost to fix or complete the work correctly.
Enhanced Damages: Under the CCPA or civil theft statutes, you might recover three times your actual damages if you can prove bad faith conduct.
Attorney Fees: Both the CCPA and civil theft statutes allow recovery of attorney fees, which can make hiring a lawyer more feasible.
Practical Considerations: The contractor's ability to pay affects your actual recovery. Insurance coverage, business assets, and personal assets all factor into what you might realistically collect.
Working with Other Victims
Construction scammers often target multiple homeowners with similar schemes. If others in your area were victimized by the same contractor, there might be opportunities for class action lawsuits or coordinated individual actions that can increase leverage and reduce costs.
Red Flags to Watch For
Learning to identify potential scams can help you avoid future problems:
Demands for large upfront payments
Door-to-door solicitation, especially after storms
Prices significantly below other estimates
Pressure to sign immediately
No local address or proper licensing
Cash-only payment requests
Don't Go It Alone
Construction scam cases involve complex legal issues and often require proving intent and damages. The statutes provide powerful remedies, but they require proper presentation and evidence. Moreover, many construction law attorneys work on contingency fees for clear fraud cases, meaning you don't pay unless you recover money.
If you've been victimized by a construction scammer, don't assume your money is gone forever. Colorado law provides multiple avenues for recovery, including the possibility of getting back three times what you lost, plus attorney fees. The key is acting quickly and getting experienced legal help to evaluate your specific situation and determine the best path forward.
Contact an experienced Colorado construction defect attorney today to discuss your case and explore your options for recovery. Time limits apply, and the sooner you act, the better your chances of getting your money back.
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