July 10, 2009
For anyone who deals with construction contracts that relate to real property in the State of Colorado, be aware that there is recent legislation that voids provisions in those contracts that require the application of the law of another state to issues arising out of those contracts. Specifically, the law now provides that regardless of any contractual provision to the contrary, the laws of the State of Colorado will apply to every construction agreement that affects improvements to real property located in the State of Colorado. The term “construction agreement” is defined very broadly and encompasses any contract, subcontract, or agreement for materials or labor for any type of construction work including: alterations, renovations, repairs, maintenance work, design, planning, supervision, etc., of any building, structure, street, water or sewer system, and gas or other distribution system. See C.R.S. §13-21-111.5(6(e)(I). This law applies to any construction agreements entered into on or after July 1, 2007. Therefore, any construction agreements entered into after that date are governed by the laws of the State of Colorado, even if they require the application of the law of another state.
If you would like additional information or have any questions, please contact our Construction Law Practice Group.
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