Colorado Real Estate Journal - March 18, 2015
The Chinese lunar calendar may declare this the Year of the Sheep, but for The American Institute of Architects, 2015 is designated “the Year of the Advocate.” As local AIA Colorado leaders return from AIA National’s annual Grassroots Conference in Washington, D.C., where they advocated on behalf of federal issues, the AIA Colorado Chapter is supporting two Colorado bills: House Bill 15-1197, “Indemnity in Public Construction Contracts,” and Senate Bill 15-177, “HOA Construction Defect Lawsuit Approval Timelines.” The first bill AIA Colorado is supporting is HB 15-1197. Currently, some Colorado municipalities and public entities include a “duty to defend” provision in their contracts. These clauses are often non-negotiable and require architects and other design professionals to defend the public entity, regardless of whether the design professional’s scope of work is called into question. These clauses are uninsurable under professional liability insurance, meaning that small businesses are left to choose between forgoing new work and growing their business or exposing their business to significant risk. HB 15-1197 provides for a more equitable solution, in line with state of Colorado and other private contracts, limiting the amount of liability exposure to only the architects’ and other design professionals’ own errors, and enabling design professionals to obtain sufficient insurance for the public work they are undertaking. This bill will ensure that small businesses can compete for these contracts and that, in the event of a lawsuit, taxpayers will be protected. AIA Colorado is working with the American Council of Engineering Companies of Colorado in support of this bill. The second bill AIA Colorado is supporting is SB 15-177. Over the past several years, for-sale condominium construction has seen nearly a 20 percent decrease. As a result, first-time homebuyers and those looking to downsize from their singlefamily homes are left with few options. This bill will help encourage construction and ensure construction defects claims are addressed quickly and fairly for all homeowners. SB 15-177 would require that parties engage in alternative dispute resolution before filing a lawsuit, and in order to file a lawsuit, the majority of association homeowners would have to vote to approve the suit moving forward. The vote would be based on a mandatory full disclosure to homeowners, including detailed information such as the scope of the litigation, the cost to the association and its members, and the impact on the values of the units included, as well as excluded, from the litigation. AIA Colorado is working in partnership with members of the Homeownership Opportunity Alliance to support this bill. Advocacy is truly a member-driven effort. AIA Colorado’s Government Affairs Committee is an integral component of the organization’s advocacy efforts. Its importance is underscored in our bylaws, which designate it as a standing committee whose purpose “is to provide advocacy for the profession of architecture in the state Legislature, the state executive offices, state board and commissions.” During each legislative session, member volunteers take part in the GAC’s legislative subcommittee by reviewing each bill introduced and focusing on those that affect the design and construction industry, with a keen eye to those that directly impact architectural practice in Colorado. If AIA Colorado takes a formal position to support or oppose a specific piece of legislation, it mobilizes members to reach out to legislators to explain the bill’s benefits or detriments to taxpayers, municipalities and business owners, respectively. It is this type of grass-roots advocacy that allows AIA Colorado to be a powerful voice for Colorado architects, their clients and their communities.