Choosing and vetting contractors in Colorado

How licensing works in Colorado

Homeowners from other states are often surprised that Colorado does not issue one statewide general contractor license. Instead, many cities and counties license contractors themselves, and their requirements differ. Denver, for example, licenses contractors by type of work, while a smaller town may rely mainly on permits and inspections. A few trades are licensed by the state: electricians and plumbers hold licenses through the Colorado Department of Regulatory Agencies (DORA).

The practical step is the same everywhere. Call or search your local building department, ask what license or registration applies to the work you are planning, and confirm the contractor holds it. Then confirm the permit will be pulled in the contractor's name.

Finding good candidates

Start with people who have seen the work, not just the website. Neighbors who had similar work done two or more years ago are the best source, because they can tell you how it held up and how the company handled problems afterward. Suppliers are another quiet source: the counter staff at a roofing or plumbing supply house know which crews pay their bills and come back for warranty work.

After hailstorms, be wary of the contractor who finds you. Door-to-door crews and yard signs appear fast. Some are reputable; many are not local and will be hard to reach later. Our hail and roof guide explains Colorado's specific rules for roofing contracts, including the ban on contractors waiving or paying your insurance deductible.

Comparing bids line by line

Two or three written bids is a reasonable target for most projects. The cheapest bid is often cheapest because it leaves things out. Lay the bids side by side and compare the scope before the total.

• Is the scope described in specific terms: materials by brand and line, quantities, areas covered?
• Does it say who pulls the permit, and is the permit fee included?
• Is cleanup and debris removal included?
• How are surprises handled, such as rotted decking under a roof or hidden water damage? Is there a written change-order process with unit prices?
• What is the schedule, and what happens if the start date slips?
• What warranty applies to workmanship, separate from the manufacturer's product warranty?

If one bid is far below the others, ask that contractor directly what they are not including. Sometimes there is a good answer. Often there is not.

Contractor scorecard

Use this for each contractor you are considering. Items marked essential should be confirmed before you sign. The score is a simple guide, not a rating of any business.

What belongs in the contract

The contract should restate the bid in full and add the terms that protect both sides. At minimum it should name the company exactly as registered, include the scope and materials, list the price and payment schedule, give start and completion dates, explain how changes are approved and priced, state who pulls the permit, describe the warranty, and say how disputes are handled. For roofing work, Colorado law also requires specific items, including cancellation terms.

a verbal promise matters to you

get it added to the contract in writing before signing.

the contract says "allowance" for a material

ask what the allowance buys and how overages are billed.

the project is large or structural

consider having an attorney read the contract before you sign.

Payments, deposits and lien waivers

Structure payments so that you are never far ahead of the work. A modest deposit for materials, progress payments at clear milestones, and a final payment after the final inspection is a common pattern. Pay by check or card so there is a record. Avoid paying cash.

Colorado's mechanics' lien law gives unpaid subcontractors and suppliers rights against the property they improved. That means you could be asked to pay twice if your contractor does not pay their suppliers. Ask for lien waivers as you make payments, especially on larger jobs, and keep copies with your house records.

During and after the job

Keep a short log: dates crews were on site, photos at the end of each day, and copies of any change orders. Walk the work before the final inspection and make a punch list of anything unfinished. Make the final payment after the permit is closed and the punch list is done. Then file the contract, warranty, permit card, lien waivers and photos in your house log. The seasonal calendar reminds you when to check that the work is holding up.