In accordance with CDARA, any party claiming construction or design defects must provide a pre-litigation Notice of Claim Process (“NOC”). As evidenced by this definition, CDARA is applicable to almost everyone involved in the construction process. Amended in 2003, CDARA was created with the intention of curbing frivolous lawsuits involving the construction industry and limiting the liability of all construction professionals.Ĭolorado’s CDARA governs all actions (including arbitration) brought against a “construction professional” that asserts a claim “caused by a defect in the design or construction of an improvement to real property.” A “construction professional” is defined as “an architect, contractor, subcontractor, developer, builder, builder vendor, engineer, or inspector performing or furnishing the design, supervision, inspection, construction, or observation of the construction of any improvement to real property”. In 2001, after significant lobbying by Colorado’s insurance and construction industry, the Colorado General Assembly passed CDARA in an attempt to regulate all claims and litigation in which a party is claiming construction defects.
What is the Construction Defect Action Reform Act? The purpose of this article is to provide a summary of how CDARA is applied to construction defect claims. While portions of this act are reasonably straightforward, several of the sections are subject to ongoing debate as to how these concepts should be applied to achieve fair and unbiased results. Seq.) or “CDARA”, has governed how construction defect litigation and arbitration actions are conducted in Colorado. For 17 years, the Construction Defect Action Reform Act (C.R.S.
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