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Colorado Construction Contract Attorneys: Managing Risk In Construction Contracts



Every construction project has its risks. From weather delays to problems with materials to permit issues, there is always a possibility that something will go wrong on any construction job.

Protect your business from unnecessary risks by consulting with the experienced construction lawyers at Volpe Law, LLC. Our knowledgeable team of Colorado attorneys can help you manage and allocate the unique risks in every contract.


While you can’t anticipate every problem that might arise on a construction job, your contract can help you manage risk by specifying who will bear the financial burden when something goes wrong. Some common ways to manage liability include:

  • Indemnity Clauses: Indemnification clauses require one person to hold another person harmless, defend them, or reimburse them, under certain circumstances. Indemnity clauses are common in construction contracts but can be complicated under Colorado’s Pro Rata Liability Act, which assigns proportional liability to any person or entity who causes damages. There are very crucial nuances to indemnification clauses; therefore, you should have them reviewed and drafted by an attorney.
  • Vicarious Liability Clauses: Under this legal theory, a person or entity may be legally responsible for someone else’s actions. For example, a subcontractor, outside employer, or insurance company could have legal liability after a workplace accident.
  • Construction Insurance Requirements: Insurance policies can protect your construction business in a variety of ways. Some of the most common types of insurance a construction attorney may recommend to manage your risk include:
    • Builder’s Risk Insurance, which covers damages caused by fire, weather, and vandalism to buildings under construction
    • Professional Liability Insurance to protect businesses from claims that errors or mistakes were made in the work
    • General Liability Insurance, which protects policyholders from liability in cases of bodily harm or property damage during construction
    • Umbrella Insurance, which offers additional coverage in cases of serious accidents or damage that max out your other insurance policies
    • Workers’ Compensation Insurance, as required by law, to cover the costs when workers are injured on the job
    • Inland Marine Insurance, in the event materials for the project are damaged during transport
    • Construction Bonds and Contractor License Bonds, required in the cities of Denver and Arvada, protect contractors if they violate laws or regulations during the project
    • Owner-Controlled Insurance Programs (OCIP), also known as wrap or wrap-up policies, which are centrally administered for the entire project. You might also see CCIP programs – Contractor-controlled insurance programs.

Owner–Controlled Insurance Programs (OCIPs) were developed to make the insurance programs used primarily for construction projects more equitable, uniform and efficient. OCIPs eliminate the costs of overlapping coverage and delays caused by coverage or other disputes between the parties involved in a project and, at the same time, protect all the contracting parties by bringing the risk of loss from the project within the insurance coverage of the OCIP.

Get Help From Colorado Construction Attorneys Today

Depending on the circumstances of your construction project, the experienced Colorado construction attorneys at Volpe Law, LLC, may recommend some or all of these strategies to help protect your business. For help with your construction contract, call our office or contact us online.


The information contained on this website is provided for informational purposes only. It is not legal advice and should not be construed as providing legal advice on any subject matter. Laws frequently change and therefore this content is not necessarily up to date, nor comprehensive. Contact us or another attorney with any legal questions specific to your matter. You may request a consultation by completing our consultation request form.

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The material on this site and on any third-party web site link included on the Volpe Law, LLC website is for informational purposes only. Nothing on this website may be construed as legal advice. Laws frequently change and therefore this content is not necessarily up to date, nor comprehensive. Contact us or another attorney with any legal questions specific to your matter. You may request a consultation by calling us at 303-268-2867 or completing a consultation request form. Using this website, filling out any forms, or communicating with Volpe Law, LLC through this site does not form an attorney/client relationship. Your matter may be subject to time limitations. You may be barred from taking any action if you do not timely act. Using or interacting with this website does not constitute your reliance on Volpe Law, LLC to take any action to represent you or preserve any claim that you may have or may assert. Please see Terms of Use for further information.