Need a Home Services Contract in Colorado? AroundWire Can Help

In Colorado, contracts for home services—such as remodeling, repair, HVAC, plumbing, and electrical work—are governed by a combination of state statutes, local ordinances, and industry norms. Key features include a written contract requirement for projects over $500, with scope of work, materials, timeline, payment schedule, and warranty terms clearly outlined. Licensed trades (e.g., electricians, plumbers) must include their license numbers, and contractors are typically required to verify local licensing or registration, especially in Denver and other municipalities with their own permitting and inspection processes. State law prohibits certain unfair practices, such as requiring excessive upfront payments; typical deposits range from 10% to 30%, with subsequent payments tied to project milestones. Contractors are generally required to carry general liability insurance and, if employing workers, workers’ compensation coverage. Contracts should specify dispute resolution methods, with mediation or arbitration favored before litigation. Colorado’s Homeowner Protection Act restricts certain waiver clauses, such as those limiting a homeowner’s right to recover damages for construction defects. The state also mandates that contractors provide a written notice of the homeowner’s right to cancel within three business days for door-to-door sales. Risk factors include compliance with building codes, lien laws (mechanic’s liens must be managed carefully), and timely permitting. Overall, contracts should be detailed, compliant with both state and local regulations, and structured to clearly allocate responsibilities and manage risk.