Entering 2026, the construction industry faces a landscape defined by tighter margins, evolving defect law, and contracts that continue to shift more risk downstream. Projects are moving fast and courts continue to apply contractual and statutory requirements strictly. That makes early identification and documentation of issues, balanced contracts, clearly defined responsibilities, and timely resolution essential.
Balanced contracts, clearly defined responsibilities, and timely resolutions remain essential in 2026. With that in mind, our resolutions for 2026 focus on understanding changes in the law, reinforcing practices that keep projects running smoothly, and minimizing avoidable risk.
1. Know the Changes to CDARA
In 2025, Colorado passed HB25-1272, which amends the Construction Defect Action Reform Act (CDARA). One major component of HB25-1272, is the creation of the voluntary Multifamily Construction Incentive Program (MCIP). The legislature’s stated intent in creating MCIP’s was to incentivize more construction of affordable housing. For any multifamily projects you have coming up in 2026, you should inquire as to whether those projects are MCIP projects.
The law also changes the rules for construction defect cases in general, including more robust disclosure requirements; changes to the statutes of repose; and prohibitions against certain cancelations of insurance policies based on claims. Since HB25-1272 is brand new, and nuanced, we encourage you to familiarize yourself with HB25-1272’s changes and discuss those changes with your counsel.
2. Define Design Scope Before Work Starts
Delegated design remains a source of disputes. The issue is often misallocation of design responsibility: one party intends to offer only limited design input, but contract language or omissions effectively shift design risk downstream without aligning scope, standards of care, insurance, and price. Design liability is often shifted through scope of work language, submittals, RFIs, BIM coordination, or “contractor-designed” components, leaving downstream parties holding risk they never priced or insured.
The remedy is to clearly define responsibility and coordination obligations at the outset. Confirm what is delegated, what is design-assist, and what design responsibilities remain with the design professional and what design responsibilities are included in your scope. Where appropriate, expressly exclude design responsibility from your contract, rather than assuming it will be inferred or implied.
3. Document Issues Early and Follow the Contract’s Notice Provisions
One of the most common risk drivers we see is how a problem is actually handled in the field and in the office. When conflicts, delays, or changes go undocumented or are communicated less than perfectly, future claims are undermined or waived entirely. Similarly, when contractual notice provisions are overlooked and change or claim deadlines are missed, parties risk losing otherwise valid claims. Failures in documentation lose cases, even where the impacts, changes, or conflicts are real.
The remedy is straightforward. Identify issues and document them early, consistently and in the format required by upstream parties. Just as important, understand when notice is required, who must receive it, and how it must be given under the contract. Following these steps avoids procedural roadblocks and keeps disputes focused on substance, rather than timing or method of notice.
4. Align Your Bids with the Scope
Scope disputes often start with bids. When bids are vague, key exclusions or assumptions are not documented, or the bid scope does not match the final contract, parties end up arguing later about work that was never intentionally priced or agreed to.
The fix is alignment and documentation. Clearly define inclusions, exclusions, and assumptions in the bid, and confirm how the bid is incorporated into the contract. Make sure the executed agreement reflects what was actually priced. When scope evolves after a bid is submitted, document it. Aligning your bid scope with the contract scope reduces change disputes, pricing fights, and uncertainty over responsibility.
5. Keep Warranty Obligations Reasonable
Overly broad warranties and extended post-completion obligations can expand liability far beyond what was priced or insured. Multi-year warranties that exceed manufacturer coverage and ongoing maintenance obligations can create risk that standard insurance may not cover. Problems also arise when warranty terms are not consistent across the project, leaving one party responsible for performance it does not control.
To fix this, define exactly what is being warranted, for how long, and when the warranty starts and ends. Keep warranty periods consistent with manufacturer warranties and industry norms and avoid guarantees that go beyond the work you actually performed. Consider negotiating common-sense exclusions from your contract, such as wear and tear, normal aging, improper maintenance, misuse, or work performed by others, so warranties are realistic and defensible.
These resolutions reflect the practical steps that can help projects stay on track and disputes stay manageable in the year ahead. We wish you a successful and productive 2026!
And, as always, remember to seek help if you need it. The Construction Law Practice Group at Woods Aitken can help you and your team meet these contracting resolutions. We offer risk management seminars that can be tailored to address unique challenges facing a business and can review and draft contracts to aid in your negotiations. We encourage you to subscribe to our Construction Law E-Briefs for the latest construction news, tips, and updates.