Construction Law & Litigation

Every construction contract, from a home remodel to a skyscraper, involves an interlocking series of contractual relationships among owners, contractors, designers, engineers, subcontractors, suppliers, insurers, and laborers.  If something goes wrong, these agreements, whether written or oral, will largely dictate who bears the resulting loss.  Thus, it is vital that each participant consults a lawyer at the beginning of the project to get help in drafting and understanding the contracts that define these relationships.  HBC attorneys have extensive experience in drafting, reviewing, and litigating construction contracts.  Our firm’s experience with lawsuits involving poorly drafted or unbalanced contracts enables us to help clients spot and eliminate potential trouble areas in the documents — before construction begins. 

Colorado’s real estate and housing boom in the 1990’s led to an increase in litigation over construction defects.  Later, the Colorado legislature added new procedural and substantive statutes for the litigation and resolution of these claims, making this practice area more complex and adding new traps for the unwary.  One of the most important laws is known as the Construction Defect Action Reform Act, or “CDARA.”  The new laws such as CDARA have raised a series of legal questions that the courts have yet to completely resolve, adding to the uncertainty faced by owners and builders alike.  Our attorneys have litigated construction defect claims from all sides of the argument.  We help owners to recover compensation for defects that were caused by negligent construction, or defects that were improperly concealed.  We also help contractors, subcontractors, and design professionals defend against meritless claims.

A fundamental mechanism for managing risk on construction projects is insurance. There are a myriad of types of insurance policies available for construction projects.  Such policies provide two basic benefits: indemnification for losses arising out of covered claims; and a defense in the form of legal representation for claims that may be covered by the applicable policy.  Coverage in a policy merits close administrative attention to ensure that all of the risks are properly recognized and managed. Typical forms of insurance on construction projects include:

• Commercial General Liability Insurance (“CGL”)
• Property Insurance
• Builder’s Risk Insurance
• Professional Liability Insurance
• Excess/Umbrella Insurance
• Vehicle/Equipment Insurance
• Worker’s Compensation Insurance

HBC attorneys assist clients in obtaining the proper coverage for their projects and asserting claims under those policies if claims arise.  We have also pursued bad faith claims against insurers that have improperly denied claims.

Architects, engineers, and other design professionals sometimes face claims of defective design and specifications.  Colorado law provides important defenses for design professionals against negligence claims arising from work that is also governed by construction contracts.  Like contractors, design professionals have mechanic’s lien rights to secure payment for services.  This is important as a mechanic’s lien may provide the only source of recovery from an insolvent as such claims may have priority over even those of a construction lender.  Finally, architects may be able to secure additional remedies by asserting patent and copyright claims to the intellectual property inherent in their work.  All of these issues are complex, requiring the guidance of a skilled design and construction lawyer.  With substantial expertise in litigation involving architecture, engineering, surveying and intellectual property, HBC attorneys are well qualified to handle the often complex legal needs of design professionals.

Colorado’s Mechanic’s Lien Statute provides important safeguards for unpaid design professionals, contractors and subcontractors – and offer property owners key protections against fraudulent or excessive liens.  Deadlines must be strictly observed, lien claims must be well grounded, and often-complex relationships among sub-subcontractors, suppliers, and materialmen must be analyzed.  HBC’s construction litigators emphasize litigation of mechanics’ liens for design professionals, contractors, subcontractors, and owners. We know how to press the claims of unpaid lien claimants and how to protect owners from the risk of double-payment when a contractor defaults.