The Governor of Colorado, Jared Polis (D), in May, signed a bill that encourages builders to build very needed multifamily homes through a program that makes the construction responsibility insurance more attractive to reducing their premiums.
The law of 2025 creates a guarantee program that contractors can choose to cover defects at no cost for the owner of a minimum of one year for quality and work materials, two years for plume and electric work and six years for important structural components. It also requires an inspection of third parties during the construction that will lead to an employment certificate and provides for various resources in case a defect is discovered.
The representative of the sponsor of the Principal Bill, Shannon Bird (D), said that the legislation intends address the need for an increase in multifamily property opportunities. “The bill we have approved this year aims to encourage the construction of higher quality homes and improve the process of resolving disputes when a construction defect has been identified,” he said. “These mechanisms together will give more confidence in builders in their litigation risk assessments. We believe this is an important step in giving more consumers the opportunity to buy a quality home at an affordable price.”
The construction of Condominis in Colorado has been affected by the Law on the Action of Construction Defects in 2001, established a process for homeowners to demand builders when they found defects that could go from minor complaints about finishes to severe structural or air conditioning problems. As a result, the high costs of litigation of construction defects stopped for years the construction of middle market condominiums in Spain.
