Understanding Colorado Senate Bill 106

W. Neal Hollington
W. Neal Hollington

Mar 27, 2024

3 minute read

Construction Defects

Recent discussions in the Colorado Senate have centered around Senate Bill 106, also known as the Right to Remedy Construction Defects bill. Presented to the Senate’s Local Government and Housing committee by Democrat Sens. Rachel Zenzinger and James Coleman, this bill aims to address concerns regarding construction defects and their legal implications for homeowners and construction companies alike. Senate Bill 106 is intended to bring more affordable housing to Colorado by attracting more real estate developers reducing the number of lawsuits filed against them over construction defects. Developers, especially condo developers, have said they face an abnormally high risk for lawsuits in Colorado, making their projects costly and difficult to insure.

What Does Senate Bill 106 Propose?

If enacted, Senate Bill 106 would introduce several new procedures for addressing construction defect claims. One notable provision would enable construction companies to rectify any alleged defects before facing legal action. This proactive approach allows them to undertake necessary repairs or engage professionals to address the issue, potentially resolving disputes before they escalate into costly litigation.

Moreover, the bill specifies the conditions under which homeowners can seek damages for construction defects. These include instances where the defect leads to actual property damage, loss of property use, bodily injury, wrongful death, or poses a risk to occupants' health and safety. Crucially, the property damage must stem from a building code violation and present an imminent threat to individuals or property.

Perspectives on the Bill

Senate Bill 106 has garnered support from both sides of the political aisle and industry stakeholders who argue that it streamlines the legal process, making it more affordable and efficient for home builders. Proponents contend that facilitating smoother construction procedures could expedite housing development, aligning with broader efforts to address Colorado's housing shortage, a priority highlighted by Governor Jared Polis.

Conversely, opponents express concerns that the bill might compromise consumer protections and result in substandard construction practices. Critics worry that by limiting homeowners' avenues for pursuing construction defect claims, the bill could leave them vulnerable to poor craftsmanship or safety hazards in their properties.

Navigating Complexities: A Step Forward?

Acknowledging the complexities surrounding housing affordability and construction quality, supporters of Senate Bill 106 emphasize its role as a starting point rather than a comprehensive solution. They recognize the need for ongoing dialogue and potential refinements to address the diverse interests involved while advancing the bill's intended goals.

However, dissenting voices caution against hastily implementing measures that could undermine homeowners' rights without achieving meaningful improvements in construction standards or affordability. They advocate for a more balanced approach that prioritizes consumer protection while fostering responsible development practices.

Conclusion

Senate Bill 106 reflects ongoing efforts to navigate the intricate landscape of construction defect litigation in Colorado. As stakeholders engage in robust debates over its merits and potential consequences, it's essential to consider the broader implications for homeowners, construction companies, and the state's housing market. Whether the bill ultimately becomes law or undergoes revisions, its journey underscores the importance of striking a delicate balance between regulatory frameworks and consumer safeguards in shaping the future of construction practices and housing accessibility in Colorado.

The information provided on this website is for general informational purposes only and should not be construed as legal advice or legal opinion. You should not act or refrain from acting on the basis of any information provided on this website without seeking legal advice from an attorney.