Senate Bill 38

  
     

In our growing effort to support the Denver/Boulder community, your BBB is the first to take action on  Senate Bill 38 (SB-38) signed by Governor Hickenlooper in June 2012 by requiring SB-38 compliance as one of our Standards for Accreditation.  This additional standard means that no roofing contractor can acquire or maintain their Accreditation unless their contract meets all guidelines set forth by the legislation.

Senate Bill 38 is a much needed reprieve from the growing concern of “storm-chasers” to both Colorado consumers and local roofing companies alike.  SB-38 requires roofing companies to abide by 9 items with each clearly laid out in their contracts; there is no grace period for compliance. The Colorado Roofing Association (CRA) recommends businesses to comply with the spirit and intent of the law immediately and to  get contracts printed or altered with newly required language as soon as is practical and possible.  

There has been a resounding support from our Accredited Businesses regarding our action on SB-38.

“I think this is a great practice for our BBB to be pursuing… Some roofing contractors did not implement the changes and some still continue to illegally waive deductibles, especially in a hailstorm environment like we are in now,” states BBB Accredited Business Advanced Exteriors owner Ty Correy.

Whether you are a business or a consumer, we encourage everyone to ensure that any contract you are signing is compliant with SB-38. To be compliant, the contract must include the 9 following items:

1)      What the bill saysScope of work and materials to be provided.
What we are looking forDoes the contract list what will be done and what is being purchased?

2)      What the bill saysCost for the same based on damages known at the time the contract is entered into.
What we are looking for: Is there a space for the date of the estimate and how much the estimate totals?

3)      What the bill says: Approximate dates of service.
What we are looking for: Will the customer know when to expect work to begin and end?

4)      What the bill says: Roofing contractors contact information.
What we are looking for: Will the customer know how to reach the contractor by phone or email as well as the address of the business?

5)      What the bill says: Identification of contractor’s surety and liability insurer and their contact information.
What we are looking forDoes the customer have access to the contractor’s insurer contact information?

6)      What the bill says: Contractors policy regarding cancellation of contract and refund of any deposit including a rescission clause allowing the property owner to rescind the contract for roofing services and obtain a full refund of any deposit within 72 hours after entering the contract.
What we are looking for: Is it clearly stated in the contract that the customer has 72 hours to rescind without owing anything to the contractor?

7)      What the bill says: A statement that the property owner may rescind a contract for services, the payment for which will be made from the proceeds of a property insurance claim, within 72 hours after receiving notice from their insurer that the claim is denied in whole or part
What we are looking for: Will the customer know that if their insurance claim is denied they can rescind the contract within 72 hours after being notified, and that the contractor is allowed to retain payments as compensation for roofing work actually performed.

8)      What the bill says: A statement in BOLD that the contractor shall hold in trust any payment from the property owner until the contractor has delivered roofing materials to the jobsite or has performed a majority of the roofing work on the property. This statement must be on the first page.
What we are looking for: The above statement verbatim – BOLDED on the first page.

9)      What the bill says: A statement that if the property owner plans to pay for the roofing services through an insurance claim, the contractor cannot pay, waive or rebate the homeowner’s insurance deductible in part or in whole.
What we are looking for: The above statement verbatim – will the customer know their responsibility regarding the insurance deductible?

Click here for a detailed look at SB38