In the "old days," a builder or subcontractor first heard of a claim against its work by service of a lawsuit. SB 800, enacted in 2002, changes the way homeowners present claims, the way a builder responds to claims, and gives subcontractors the right to inspect, defend, and repair their work before a claim degenerates to litigation.
Link
In this day of rising insurance costs and policies that provide limited coverage for the money, many insurance companies are opting to add self-insured retentions (SIRs) to their policies in order to protect against the risk of loss for "the first dollar." It is imperative, therefore, that contractors have a basic understanding of how an SIR works and how best to maximize its use since it is, after all, the contractor's money. Link
Continuing a trend we have been seeing in many states, Colorado has enacted an anti-indemnity statute--Senate Bill 87--pertaining to construction contracts, which was signed into law by Governor Bill Ritter on April 11, 2007. The new law applies to both indemnification and insurance provisions, and will limit the extent to which builders can contractually shift the risk of loss to subcontractors and their carriers. Link
Welcome to the new TheRiskCenter.com, your one stop shop to recieve free advice and materials on today's issues of concern in construction risk management practices.
