Colorado roofing contract law: what must be in the paperwork

A written contract, before any work

Colorado law requires that prior to engaging in any roofing work, a roofing contractor gives the property owner a written contract signed by both parties. The statute then lists what it must state (C.R.S. 6-22-103):

• The scope of roofing services and materials to be provided.
• The approximate dates of service.
• The approximate costs of the services, based on damages known when the contract is entered.
• The contractor's contact information, including physical address, email address and telephone number.
• Identification of the contractor's surety and liability coverage insurer and their contact information, if applicable.
• The cancellation and refund policy, including a rescission clause allowing a full deposit refund within 72 hours of entering the contract, and a written statement that the owner may also rescind under section 6-22-104.
• A written statement that, where insurance proceeds will pay for the work, the contractor cannot pay, waive, rebate or promise to pay, waive or rebate any part of the deductible.

There is one more, and it is the clause most homeowners never notice. On the face of the contract, in bold-faced type, the contractor must state that they will hold your payment in trust until roofing materials have been delivered to the site or a majority of the roofing work has been performed (C.R.S. 6-22-103(2)).

Two different 72-hour rights

72 hours from signing

The contract itself must carry a rescission clause letting you cancel and get a full refund of any deposit within 72 hours of entering it. This one applies whether or not insurance is involved.

72 hours from a denial

Where payment was to come from a property and casualty policy, you may rescind within 72 hours after you receive written notice from the insurer that the claim is denied in whole or in part. Notice of rescission can be given electronically (effective on transmission), by mail (effective on deposit) or by personal delivery. The contractor must return payments and deposits within ten days, keeping only enough to cover work actually performed (C.R.S. 6-22-104).

There is a carve-out worth knowing: the denial-based right does not apply where the insurer denies a claim for supplemental roofing services whose need could not reasonably have been foreseen at the initial inspection or when the original contract was signed.

Small jobs sit outside the article

Colorado's definition of roofing work excludes work for which the compensation is one thousand dollars or less per contract (C.R.S. 6-22-102(4)(b)). A minor repair under that figure is not covered by these contract requirements. A replacement always will be.

The clauses that should make you walk

1. "We'll cover your deductible." Prohibited outright, and it puts your claim estimate at risk. See hail claims.
2. "Sign here so we can handle the insurance company for you." A roofing contractor soliciting work in Colorado may not claim to be or act as a public insurance adjuster.
3. No bold trust statement about your payment. A required term is missing.
4. No named insurer for surety and liability coverage where the contractor carries them.
5. A large deposit before materials are anywhere near your driveway.