Understanding Construction Contracts in Colorado
Hiring a general contractor is one of the most important decisions a homeowner or investor can make when starting a renovation, remodel, or fix-and-flip project. But it can also be one of the riskiest. A clear, enforceable construction contract is essential for avoiding disputes, cost overruns, delays, and unfinished work.
Whether you're hiring for a large-scale development or a home renovation, the key is having a contract that fits the scope of the project and clearly outlines each party’s responsibilities. At GLO, we advise homeowners and investors on the most appropriate contract structure—whether lump sum, time and materials, or cost-plus—and ensure the agreement aligns with your goals, timelines, and risk tolerance.
Key Legal Protections, Review, and Compliance
The devil is in the details—and construction contracts are full of them. These agreements often include highly specific terms related to construction materials, design specs, deadlines, payment milestones, insurance coverage, and responsibilities for subcontractors and vendors. When multiple parties are involved, the complexity increases—and so does the potential for conflict.
That’s why we urge clients to never sign a proposed general contractor agreement without a careful legal review. A strong contract must contain unambiguous language that sets clear expectations for all parties. Without this clarity, disagreements can quickly escalate into legal battles, especially if there are construction defects, delays, or disputes over quality.
At GLO, we help draft, review, and negotiate general contractor agreements that reduce ambiguity and anticipate real-world risks.
Poorly drafted or outdated contracts can leave you legally and financially exposed. We bring deep experience to help clients avoid pitfalls, ensure enforceability, and build in safeguards from day one.
Navigating Disputes, Terminations, and Construction Defects
Even with a carefully negotiated contract, not every construction project goes as planned. Missed deadlines, poor workmanship, or outright breaches of contract can make termination seem like the only option—but ending the relationship too soon or without cause can create even bigger problems.
Before terminating a contractor, it's critical to understand your legal rights. GLO helps clients determine whether termination is justified, document performance issues, and explore equitable resolutions that avoid expensive litigation. In many cases, early legal intervention can lead to negotiated solutions that keep the project moving while protecting your investment.
When construction defects emerge—such as faulty wiring, leaking roofs, or poor foundation work—Colorado’s Construction Defect Action Reform Act (CDARA) provides the legal framework. It requires that the property owner give the contractor written notice and an opportunity to inspect and remedy the issue before a lawsuit can proceed. Homeowners and investors must act quickly, as CDARA imposes a two-year statute of limitations from when the defect is discovered, and a six-year statute of repose from project completion.
Disputes in construction are often high-stakes, and time is of the essence. GLO works efficiently to assess contract terms, resolve claims, and take legal action when necessary—so your project doesn’t end in financial or legal disaster.
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Whether you’re remodeling your home, managing a flip, or taking on a major development, your contractor agreement is one of the most important documents you’ll sign. With the right legal guidance, you can reduce risk, stay on budget, and protect your investment from costly surprises.
At GLO, we support clients at every stage—from selecting the right contract type and reviewing proposed agreements to resolving disputes and enforcing your rights under Colorado law. Construction contracts are too important to get wrong. Let us help you get them right.
Contact GLO today to ensure your construction contract is clear, enforceable, and built to protect your project from start to finish.
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