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CDARA was implemented in 2003 to address a perceived crisis in the Colorado construction industry, caused by a surge in litigation over construction defects. The law aims to limit frivolous claims and encourage dispute resolution by imposing procedural requirements before a lawsuit can be filed.
Such letters are required under the Colorado Construction Defect Action Reform Act (?CDARA?). Under the statute, anyone making a claim for defective construction must first go through a process before filing the lawsuit called the Notice of Claim process.
Colorado's Statues of Limitation and Repose apply to all construction defect claims against the construction industry.
What is the Construction Defect Action Reform Act? In 2001, after significant lobbying by Colorado's insurance and construction industry, the Colorado General Assembly passed CDARA in an attempt to regulate all claims and litigation in which a party is claiming construction defects.
In Colorado, the statute of repose is six years, but it can be extended all the way out to eight years under certain circumstances. See id. at § 13-80-104(2).