Hiring a Contractor in Colorado: What to Check

In many states, you can check a general contractor's state license in a minute. Colorado is different. The state's Department of Regulatory Agencies (DORA) says that not all occupations are licensed, such as roofers and general contractors. Licensing for those trades happens at the city or county level, if at all. That puts more of the vetting on you.

Layer 1: State licenses for trades

Some trades are licensed by the state. Electricians and plumbers hold state licenses you can check with DORA's license lookup. If your project includes electrical or plumbing work, look up the people doing it. Ask whether those trades are done by the contractor's own licensed staff or by subcontractors, and get their names.

Layer 2: City and county licensing

Most metro cities require contractors to hold a local license or registration before they can pull permits, and the classes vary:

• Aurora licenses contractors by class and notes that it doesn't issue separate plumbing or electrical contractor licenses, since those rely on state licensing.
• Englewood uses lettered license classes for general contractors, roofing and specialty trades.
• Douglas County requires contractor registration for unincorporated areas, and says registration fees are currently waived.
• Denver licenses contractors through its contractor licensing office.

Call or check the city's website to confirm the contractor's license for your city is current. A license in one city doesn't carry over to another.

Layer 3: Insurance

Ask for certificates of insurance for general liability and workers' compensation, sent directly from the insurer or agent. Check the dates and the coverage limits. Workers' comp matters because an injured uninsured worker on your property can become your problem.

Layer 4: References and history

• Ask for three recent references for similar projects, and call them.
• Look at completed projects if possible.
• Search the business name with your city's permit records, if available online, to see past permits.
• Check reviews on more than one site. Look for patterns, not one-off complaints.

Roofing: extra state protections

Because hail drives so much roofing work, Colorado has specific rules for roofing contracts:

• Written contract required. Under C.R.S. 6-22-103, roofing contracts must include specific items, such as the scope of services and materials and the roofer's contact information. Roofers must hold in trust any payment from the property owner until they've delivered materials or started work.
• Cancellation right. Under C.R.S. 6-22-104, a homeowner can cancel a roofing contract within 72 hours after receiving written notice that an insurance claim was denied in whole or in part.
• No deductible games. C.R.S. 6-22-105 prohibits roofers from offering to waive, pay or rebate any part of an insurance deductible.

The Colorado Division of Insurance also advises homeowners after storms to check references and work with Colorado-based contractors when possible, and to be careful with door-to-door and phone solicitations.

Contracts and payments

A good contract spells out:

• The scope of work, materials and brands, and allowances.
• Who pulls permits and schedules inspections.
• A start date and estimated duration.
• A payment schedule tied to completed milestones.
• How change orders are approved and priced.
• Warranty terms for workmanship and materials.
• Cleanup and disposal.

Avoid large up-front deposits. Pay as work is completed and inspected. Ask for lien waivers from the contractor and major subcontractors and suppliers as you pay.

Red flags

• Offers to waive your deductible or "cover" it.
• Pressure to sign the same day.
• No local license, or the contractor asks you to pull the permit for work they're doing.
• Cash-only payment.
• No written contract or a vague one.
• No physical business address or local phone number.

When you're the general contractor

If you live in a single-family home in Denver, you can act as your own general contractor under the city's owner-occupier rules, hiring licensed subcontractors. See pulling your own permit in Denver.

For project-specific tips, see our roofing guide and kitchen remodeling guide.