As used in this part 8, unless the context otherwise requires:

1. (1) Action means a civil action or an arbitration proceeding for damages, indemnity, or contribution brought against a construction professional to assert a claim, counterclaim, cross-claim, or third party claim for damages or loss to, or the loss of use of, real or personal property or personal injury caused by a defect in the design or construction of an improvement to real property.
2. (2) Actual damages means the fair market value of the real property without the alleged construction defect, the replacement cost of the real property, or the reasonable cost to repair the alleged construction defect, whichever is less, together with relocation costs, and, with respect to residential property, other direct economic costs related to loss of use, if any, interest as provided by law, and such costs of suit and reasonable attorney fees as may be awardable pursuant to contract or applicable law. Actual damages as to personal injury means those damages recoverable by law, except as limited by the provisions of section 13-20-806 (4).
3. (3) Claimant means a person other than the attorney general or the district attorneys of the several judicial districts of the state who asserts a claim against a construction professional that alleges a defect in the construction of an improvement to real property.
4. (4) Construction professional means 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. If the improvement to real property is to a commercial property, the term construction professional shall also include any prior owner of the commercial property, other than the claimant, at the time the work was performed. As used in this subsection (4), commercial property means property that is zoned to permit commercial, industrial, or office types of use.
5. (4.5) Multifamily construction incentive program or program means the program created in section 13-20-803.3 (1).
6. (5) Notice of claim means a written notice sent by a claimant to the last-known address of a construction professional against whom the claimant asserts a construction defect claim that describes the claim in reasonable detail sufficient to determine the general nature of the defect, including a general description of the type and location of the construction that the claimant alleges to be defective and any damages claimed to have been caused by the defect.
7. (6) Program claim means all actions for damages, indemnity, or contribution brought against a construction professional to assert a claim, counterclaim, cross-claim, or third-party claim for damages or loss to, or the loss of use of, real or personal property for which the builder is a participant in the program or for personal injury caused by a defect in the design or construction of an improvement to real property for which the builder is a participant in the program.

8. (7) Third-party inspection means a program of inspections of a residential housing unit performed over the course of construction on the unit and designed to assist the construction professional performing the construction on the unit in identifying and rectifying any instances in which the work being performed by the construction professional deviates from applicable building codes or construction standards. The construction professional who signs the building permit application shall, subsequent to filing the permit application and prior to the issuance of a certificate of occupancy, certify in writing filed with the building department that the third-party inspector was qualified and the inspection complies with the following requirements for any component, system, or improvement alleged to be defective:

   1. (a) The inspection was performed by either a licensed construction professional or a building code inspector, electrical inspector, energy conservation code inspector, fire code inspector, or mechanical code inspector, if such inspector provides evidence of successful completion of the most recent version of the commercial building inspector examination by the International Code Council or its successor organization:

      1. (I) Who has expertise designing, constructing, or inspecting the component, system, or improvement being inspected;

      2. (II)

         1. (A) Who is an independent third party not otherwise employed by or affiliated with the construction professional who was involved in the development, design, or construction of the component, system, or improvement; or
         2. (B) Who is an inspector acting under the direction of an insurer providing a commercial general liability policy of insurance purchased to insure the subject residential housing unit against property damage resulting from defects in the design or construction of the unit;
      3. (III) Who is responsible for performing the inspection duties with a reasonable degree of care; and
      4. (IV) Who is not designated as a nonparty at fault pursuant to section 13-21-111.5 (3)(b); and

   2. (b) The inspection includes, for each component, system, or improvement, a signed certification that, for each component, system, or improvement, verifies that:

      1. (I) The component, system, or improvement was included in approved construction documents and specifications, including addendums issued during construction, under the valid seal of an architect or engineer licensed in Colorado;

      2. (II)

         1. (A) Prior to inspection by the building department, the component, system, or improvement was subject to a field inspection and approval by the third-party inspector who certifies that, at the time of inspection, the component, system, or improvement was sufficiently accessible to determine compliance with and did comply with applicable manufacturer's instructions or recommendations, approved construction documents and specifications, including addendums issued during construction, and the applicable building codes.
         2. (B) If the field inspection does not include every location where the component, system, or improvement is constructed, the signed certification must include the permit number; the date of inspection; the type of inspection; the contractor's name and license number; the street address of the job location; the name, address, and telephone number of the inspector who performed the inspection; and a statement that the inspector inspected a sufficient number of locations to conclude with a reasonable degree of certainty that every location of the component, system, or improvement complies with the applicable manufacturer's instructions or recommendations, approved construction documents and specifications, including addendums issued during construction, and the applicable building codes.
      3. (III) The construction professional successfully repaired or resolved any instance of noncompliant design or construction identified during an inspection and that the component, system, or improvement complies with the applicable manufacturer's instructions or recommendations and approved construction documents and specifications, including addendums issued during construction; and
   3. (c) The inspection is not an inspection performed by or on behalf of a governmental authority having jurisdiction over the residential housing unit as a condition of any permitting or the issuance of a certificate of occupancy.

Source: L. 2003: Entire section added, p. 1361, § 2, effective April 25. L. 2025: (4.5), (5.5), and (6) added, (HB 25-1272), ch. 183, p. 783, § 2, effective August 6.

Editor's note: (1) Subsections (6) and (7) were numbered as subsections (5.5) and (6), respectively, in HB 25-1272 but were renumbered on revision for ease of location.

(2) Section 8(2) of chapter 183 (HB 25-1272), Session Laws of Colorado 2025, provides that the act changing this section applies to construction defect claims brought on or after August 6, 2025.

Cross references: For the short title (Colorado American Dream Act) and the legislative declaration in HB 25-1272, see section 1 of chapter 183, Session Laws of Colorado 2025.