Homeowner Claiming Construction Defects to Avoid Paying? Colorado Contractors

The homeowner says the work is defective and refuses to pay the balance. Sometimes the punch list is real. Sometimes the defect claim is a way to stall payment on finished work. Either way, Colorado’s Construction Defect Action Reform Act (CDARA) sets a notice process before many defect suits.

This page explains the CDARA notice clock in plain English and how Darkwell funding can help a contractor carry a $10,000+ payment claim when defect allegations are the holdup.

Homeowner using defects to stall a $10,000+ invoice? Request a free claim review.

CDARA notice before a defect suit

C.R.S. § 13-20-803.5 requires a written notice of claim before filing an action against a construction professional: at least 75 days before filing for residential property, or at least 90 days for commercial property. The construction professional may request an inspection within 30 days, then may offer to settle or remedy within 30 days after inspection (45 days on commercial property).

• Notice first. Filing without the notice process can stay the case until the claimant complies.
• Inspection and offer windows are short. Missing them changes leverage.
• Payment claims still run on their own clocks. A defect dispute does not automatically pause your mechanic’s lien deadlines under § 38-22-109.

Your attorney decides whether CDARA applies to the homeowner’s claim and how it interacts with your unpaid invoice.

Defect talk vs. nonpayment

Not every punch-list email is a CDARA claim. And not every CDARA notice erases money you are owed for completed work. Keep the documents: the contract, change orders, inspection reports, and the homeowner’s written defect list. See also funding claims against homeowners.

When funding helps

If the balance is large enough and counsel is the bottleneck, funding can help carry the cost of responding to defect allegations while pursuing payment.

How Darkwell helps

Legal costs are often what stops a good claim. Darkwell helps carry them. When a homeowner raises defects to avoid paying, that can mean funding the payment claim alongside your attorney.

• We help carry the cost. Darkwell funding helps pay for the case, so your operating cash stays in your business.
• We bring attorneys we know. Darkwell has a network of attorneys we know. They help keep costs down while still pursuing the claim. The claim moves forward with an attorney from our network, or your current attorney where it fits.
• Your attorney handles the law. We don’t run your case or choose your legal strategy. Your attorney does that.
• You make a clear decision. The goal is to take the stress out of the fight and make the smart financial decision about your claim.

What to send for a claim review

• Contract, change orders, and punch lists
• Invoices and payment history
• The homeowner’s written defect claims or CDARA notice
• Your response, inspection reports, and photos
• Any lien filings
• Your attorney’s contact, if you have one

How we get paid

Our fee comes out of the recovery, not your pocket. If there’s no recovery, you don’t repay our funding. Your written agreement sets the exact terms.

Where we work and claim size

We fund business claims, and individual and consumer claims in some states, reviewed state by state where the law allows. We confirm your state during review. See where Darkwell funds claims.

In select cases, we may purchase a business claim outright, where state law allows.

We review claims of $10,000 or more, subject to review and approval by our team.

Darkwell does not buy or collect consumer debt in states that require a collection license, including Colorado.

Common questions

Does CDARA stop me from getting paid? No. CDARA sets a notice process for many construction-defect actions. Your payment claim and lien clocks are separate. Ask a Colorado attorney how they interact.

What if the defects are real? Your attorney sorts warranty, offset, and payment issues. Darkwell reviews the documents and the amount.

Does Darkwell control my case? No. Your attorney handles the case. Darkwell provides funding.

Sources

• C.R.S. § 13-20-803.5
• C.R.S. § 13-20-802
• C.R.S. § 38-22-109
• Darkwell: Claims against homeowners

Defects raised, balance still unpaid at $10,000+? Request a free claim review. Send what you have, and you’ll get a response from our team.

Related reading: Claims Against Homeowners · Colorado Litigation Funding · Contractor Not Getting Paid · Colorado Mechanic’s Lien Guide · Where We Fund