Construction Clauses That Cause Disputes
Posted February 02, 2026 in Uncategorized
Construction contracts are supposed to prevent problems. But in practice, poorly written or misunderstood contract language is often the reason disputes start in the first place. Understanding which clauses tend to go sideways can save contractors and property owners a significant amount of time, money, and frustration.
The Contract Is Only as Good as Its Language
Most construction disputes in Colorado do not start because one party acted in bad faith. They start because the contract left too much open to interpretation. Vague terms around project scope, payment, and timelines create room for disagreement that might have been avoided with clearer drafting from the beginning. Volpe Law LLC regularly handles disputes that trace back to contract language that seemed clear at signing but fell apart once the project was underway.
Clauses That Frequently Create Problems
Payment Terms and Retainage
Payment provisions are the most contested area in construction contracts. Issues arise when contracts do not clearly define when payment is due, what triggers a payment milestone, or how disputes over invoices are handled. Retainage clauses, which allow owners to withhold a percentage of payment until project completion, become contentious when the definition of “completion” is left ambiguous.
Change Order Procedures
Change orders are a normal part of any project. The problem is when the process for approving them is not clearly outlined. When contractors proceed with verbal approvals or assume a change is understood, they may lose the ability to collect for that work later. Property owners, on the other hand, sometimes dispute whether they ever approved a change at all. A solid contract needs to specify who can authorize changes, in what form, and within what timeframe.
Scope of Work Descriptions
Broad or generic scope descriptions are a consistent source of friction. Phrases like “complete the project to a professional standard” without specific benchmarks leave both sides guessing. What one party considers acceptable workmanship may fall well short of what the other expected.
Dispute Resolution Clauses
Many contracts include mandatory arbitration or mediation requirements before either party can file a lawsuit. These clauses are not inherently problematic, but they need to be written carefully. Unclear language about the process, jurisdiction, or cost-sharing can delay resolution and add expense at the worst possible time.
Indemnification Provisions
Indemnification clauses determine who absorbs financial responsibility when something goes wrong. Overly broad indemnification language can shift an unreasonable amount of risk onto one party, and Colorado courts have occasionally found certain indemnification provisions unenforceable. This is one area where having an attorney review a contract before signing matters most.
What Colorado Law Says
Colorado has specific statutes that affect construction contract enforceability, including limitations on certain indemnification terms. The Colorado Revised Statutes provide the legal framework that courts apply when interpreting construction agreements. Knowing what the law allows, and what it prohibits, affects how contracts should be drafted and what arguments can be made in a dispute.
When a Dispute Is Already in Progress
If a project has gone off the rails and the contract language is now at the center of the disagreement, the details matter. Courts will look at how the clause was worded, what the parties communicated during the project, and what industry standards apply. A Littleton construction litigation lawyer can review the contract, assess the strength of your position, and advise you on the most realistic path forward. Whether that means pursuing a negotiated settlement or taking the matter to court, having legal guidance early gives you better options. Common issues that end up in litigation often include:
- Unpaid invoices and retainage disputes
- Disagreements over the scope of work required
- Unauthorized or disputed change orders
- Breach of warranty claims tied to defective workmanship
- Permitting failures attributed to the contractor
Protect Your Position Before It Becomes a Fight
The best time to address contract language is before a project starts. The second-best time is as soon as a problem surfaces. A Littleton construction litigation lawyer can evaluate where you stand and what remedies are available under Colorado law. If you are currently facing a construction dispute or want a contract reviewed before work begins, contact Volpe Law LLC to schedule a discovery call.