Construction defect law in Colorado is often, blamed for the lack of condo developments because of the threat of lawsuits. The state legislature introduced a bill earlier this year to roll back provisions in the construction defect law but it was defeated quickly. The main issue is the liability risk for developers, builders, and subcontractors with current construction defect laws which make it easier for homeowners associations to file large class-action lawsuits against builders for construction defects. Developers and builders can also be prevented from repairing the defects if the homeowners association engages an attorney and often the legal expense outweigh the cost of settlements. Several construction companies including Mortenson Construction have a company policy not to do condominium projects in Colorado and haven’t done one in four years. Because of the surge in law suits, the insurance costs have risen substantially since 2008 as premiums have risen from $3,200 per condo unit to $6,300 in 2011. In 2008, there were more than 20 insurance carriers that offered insurance for condominium projects of 25 or more units but now there are only five remaining. Typically, when a general contractor gets an umbrella policy to cover subcontractors, the costs is approximately 1% of the project budget when building an office or apartment building whereas with a condominium project it can be as high as 3-4% of total cost. In 2006 and 2007, 26% of new housing stats for multi-family for the Denver area were condominium projects, however that number has fallen to just 2% this year. The Home Builders Association of Metro Denver tracked 108 permits that were filed for condominium projects in 2012 but only 13 were filed through July of this year. In comparison, apartments projects which is tracked by Apartment Appraisers and Consultants of Denver shows there is currently 13,130 apartment units under construction with an additional 18,640 in planning stages. The advantage with apartment construction is the units are not owned individually and only the apartment building owner can sue over construction defect which alleviate the large class-action law suits.