In Michelle and Michael Parra v. Gillaspie Construction, Inc. and Johnson Excavation, Inc. (Colo. App. No. 18CA0800, Mar. 21, 2019), not selected for official publication, the Colorado Court of Appeals reaffirmed an essential principle for builders, homeowners, and insurers alike: under the Colorado Construction Defect Action Reform Act (“CDARA”), the statute of limitations begins to run when a homeowner first observes physical manifestations of a defect, not when the homeowner later learns what caused those problems or concludes they are “excessive.”

The case underscores how critical it is to identify, document, and evaluate early signs of construction distress, because waiting for confirmation of a defect can mean the difference between a viable claim and one that is time-barred.

Background: Cracks, Gaps, and Growing Concern
The Parras hired Gillaspie Construction and Johnson Excavation to build a custom home in Routt County. They moved in January 2010. Within the first year, they noticed cracks in walls, a kitchen backsplash pulling away, and flooring that was “[c]upping and gapping.” By 2013, additional cracking appeared in the office and hallway, gaps opened around the fireplace and hearth, and certain cabinet doors began to misalign.