Under the "Other Resources" category, on the lower left hand side of this page, you will find a pdf version of the Colorado Common Interest Ownership Act (CCIOA), including all of the changes made by SB06-89. Just click on the link and you will be taken to a copy of the Act.
September 2006
Contracting with Association Contractors: An Ounce of Prevention
As legal counsel for community associations, we assist our clients with the various types of conflict that arise in the course of association business activities. We understand that conflict can sometimes escalate to a level that requires court intervention. We also know that certain preventative steps can help to alleviate the time, expense, and emotional drain that come with litigation. In particular, good contract drafting can help to minimize the impact of disputes between associations and their contractors. We encourage our clients to seek legal advice when entering into contracts for management services, landscape maintenance, capital improvements, and any other project or service that involves a relationship with an independent contractor. The following reminders come directly from our experience advising community associations:
A bid or proposal form, while legally binding, is not a good contract. While signing a bid or proposal form may bind the association to pay for services performed by the contractor, the association does not receive any protections as part of the bargain. We recommend contracts that contain specific provisions which, at the very least, address the scope of work, insurance coverage, payment terms, remedies for default or breach, and attorney fees for the prevailing party in any dispute that may arise under the contract terms. Bid forms do not typically include these recommended contract terms.
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Board Member Indemnification – Is it for You?
Occasionally, we receive questions about whether the Association should be responsible for indemnifying its board members and officers. The answer is resoundingly “yes”, but there are some qualifications.
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