Overview
Century Communities is headquartered in Greenwood Village, Colorado, and the state represents one of the company's founding and most active markets. The company operates communities throughout the Denver metropolitan area and the Front Range.
Colorado is where Century Communities has faced its most significant construction defect litigation, including a $19.48 million arbitration award in Aurora and an $8.5 million award in Broomfield, both in 2024. The Construction Defect Action Reform Act (CDARA) and the state's consumer protection laws create a critical legal framework for Century buyers.
How Colorado Law Affects Your Contract
The following analysis examines how Century Communities's documented contract patterns interact with Colorado consumer protection law.
Construction Defect Action Reform Act (CDARA)
CDARA (C.R.S. § 13-20-801 et seq.) establishes a 75-day notice-of-claim process before filing a construction defect lawsuit. Century Communities' arbitration clause (ARB-001) channels disputes into arbitration, which is how the $19.48 million Aurora award and $8.5 million Broomfield award were resolved. CDARA's notice requirements apply regardless of whether the dispute proceeds to arbitration.
Implied Warranty of Suitability
Colorado recognizes an implied warranty of suitability in the sale of new homes (Carpenter v. Donohoe, 388 P.2d 399, Colo. 1964). Century's habitability waiver (HAB-001) may face enforceability challenges. The Homeowner Protection Act (C.R.S. § 38-12-1101 et seq.) also provides protections. The Aurora arbitrator found Century liable for breaching the duty to construct with reasonable care.
Colorado Consumer Protection Act
The Colorado Consumer Protection Act (C.R.S. § 6-1-101 et seq.) prohibits deceptive trade practices and allows treble damages for knowing violations. This statute may provide remedies for Century buyers who allege misleading representations about Inspire Home Loans financing or construction quality.
Arbitration Outcomes in Colorado
Century Communities' mandatory arbitration clause (ARB-001) has been tested in Colorado, producing significant awards for homeowners: $19.48 million in Aurora (82-unit townhome community) and $8.5 million in Broomfield (98-home condominium). These outcomes demonstrate that arbitration can produce substantial results for buyers with well-documented defect claims.
Construction Defect Insurance Limitations
Century Communities' SEC filings identify limited availability of product liability insurance as a material risk factor. The Eleventh Circuit ruling in Century Communities of Georgia v. Selective Way Insurance Co. (2023) left Century without insurance coverage for underlying construction defect claims, illustrating how insurance coverage disputes may affect the company's ability to fund repairs.
Colorado Legal History
Selected cases and investigations involving Century Communities in Colorado.
HOA v. Century Communities (Aurora, CO) -- $19.48M Arbitration Award
An 82-unit townhome community association was awarded $19.48 million after a 17-day arbitration. The arbitrator found Century liable for breaching the duty to construct with reasonable care. Defects included leaks, foundation movement, structural framing problems, drainage issues, and fire code violations.
Condominium Association v. Century Communities (Broomfield, CO) -- $8.5M Award
A 98-home condominium association was awarded more than $8.5 million following a three-week arbitration. Defects included structural problems, improper balcony construction, failing brick facade, concrete defects, and waterproofing failures.
Candelas Townhomes Association v. Century Communities
Construction defect lawsuit filed August 11, 2025, alleging widespread problems at the Candelas Townhomes project including roof installation failures, exterior cladding issues, drainage problems, and concrete deterioration resulting in water intrusion and property damage.
Relevant Colorado Laws
Establishes procedures for construction defect claims, including notice requirements and the builder's right to inspect and repair before litigation.
Prohibits deceptive trade practices in consumer transactions, including misrepresentations in the sale of new homes.
Enacted in 2023, this act limits the enforceability of certain contract provisions that restrict homeowner rights in construction defect claims.
Colorado Key Facts
- 1Colorado's CDARA requires written notice to the builder and a 75-day inspection/repair period before filing suit.
- 2The statute of limitations is 2 years from discovery of a defect, with a 6-year statute of repose from substantial completion.
- 3Colorado's 2023 Homeowner Protection Act restricts builders from using contract provisions that limit homeowner remedies.
- 4Mandatory arbitration clauses in residential construction contracts are subject to scrutiny under Colorado law.
- 5HOA construction defect claims in Colorado require a majority vote of homeowners before filing suit.
- 6Colorado does not have a separate statutory implied warranty of habitability for new construction; protections arise from common law and CDARA.
What Colorado Buyers Should Know
- Review Century's documented construction defect history in Colorado. Century Communities has faced significant construction defect litigation in Colorado, including the $19.48 million Aurora award and the $8.5 million Broomfield award. This history underscores the importance of thorough inspections.
- Understand CDARA's 75-day notice requirement. Colorado law requires a 75-day notice-of-claim process before filing a construction defect lawsuit. An attorney familiar with CDARA can guide you through this mandatory process.
- Insist on an independent home inspection. Given Century's documented defect history in Colorado, negotiate for the right to hire your own inspector (INS-001) and ensure adequate inspection windows are included in the contract.
- Compare Inspire Home Loans with independent lenders. Century may offer incentives to use Inspire Home Loans. Compare total loan costs with at least two independent lenders before committing.
- Know the arbitration clause. Century requires binding arbitration under JAMS rules. The Colorado arbitration awards show that arbitration can produce substantial results for homeowners, but it also eliminates the right to a jury trial and class action participation.