Understanding Contractsand Warranties
A Colorado HOA's guide to protecting your siding project investment
Understanding Contractsand Warranties
A Colorado HOA's guide to protecting your siding project investment
Understanding Contractsand Warranties
A Colorado HOA's guide to protecting your siding project investment
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Understanding Contracts & Warranties
Watch our expert guide on comparing contractor bids and identifying red flags in proposals.
In This Guide
Everything you need to know about understanding contracts, organized in clear, actionable sections.
Why Contracts and Warranties Matter for HOAs
Protecting your community's investment
Essential Contract Elements
What must be included in your agreement
Change Orders and Site Protection
Managing modifications and protecting property
Understanding Warranties
Workmanship vs manufacturer coverage
Why Contracts and Warranties Matter for HOAs
When your HOA signs a contract for a siding replacement project, you're not just agreeing to a price—you're defining the terms, protections, and expectations that will guide the entire project. The same is true for warranties, which determine how your investment will be protected long after the crews leave.
A siding project contract is your roadmap—it details what's being done, when, how, and at what cost. The warranty is your safety net—it ensures you're not left covering repair costs for defects or failures down the road.
In an HOA environment, these documents protect not just one property owner, but the entire community's shared investment. Clear contracts and strong warranties help:
- Prevent misunderstandings about scope, schedule, and responsibilities
- Avoid budget overruns from unplanned work
- Provide recourse if workmanship or materials fail prematurely
Essential Contract Elements
Step 1 – Ensure the Scope of Work is Detailed
A vague scope leads to disputes. Your contract should list:
- The exact buildings and elevations included
- Siding and trim materials by manufacturer, product line, and color
- Underlayment, flashing, and weatherproofing requirements
- Paint or finish details, if applicable
- Whether related upgrades (windows, insulation, decks) are included
Step 2 – Define the Project Schedule
Contracts should specify:
- Estimated start and completion dates
- Work hours and days allowed
- Milestones tied to payment phases
- Contingency plans for weather delays—critical in Colorado's freeze-thaw and hail seasons
Step 3 – Understand Payment Terms
Look for terms that are fair and tied to progress:
- Avoid large upfront deposits
- Tie payments to milestones (e.g., completion of tear-off, siding installation, trim, and final walkthrough)
- Keep a retainage—often 5–10%—until the punch list is complete
Change Orders and Site Protection
Step 4 – Clarify Change Order Procedures
Change orders are written amendments to the contract for extra work or unforeseen conditions. The contract should state:
- How change orders will be approved
- How pricing will be calculated
- That no work outside the original scope will proceed without written board authorization
Step 5 – Include Site Protection and Cleanup Requirements
Your HOA contract should spell out:
- Protection of landscaping and common areas
- Daily cleanup expectations
- Dumpster placement and debris removal schedules
- Safety barriers in resident areas
Step 6 – Review Insurance and Licensing Requirements
The contractor should provide proof of:
- General liability insurance naming the HOA as an additional insured
- Workers' compensation coverage
- State and local licenses
- OSHA safety compliance history
These requirements protect the HOA from liability in case of accidents.
Understanding Warranties
Understanding Workmanship Warranties
A workmanship warranty covers the contractor's labor and installation quality. For HOAs, look for:
- Length – Many reputable contractors offer 5–10 years
- Coverage – It should include repairs for defects caused by improper installation
- Response time – How quickly the contractor will address warranty claims
Ask whether the workmanship warranty is transferable if a unit changes ownership.
Understanding Manufacturer Warranties
A manufacturer warranty covers defects in the siding, trim, or finish itself—not the installation. For siding projects, pay attention to:
- Term length – Fiber cement products like James Hardie often carry 30–50-year warranties; finishes like ColorPlus typically have 15-year coverage
- Exclusions – Damage from improper installation may void coverage
- Transferability – Some warranties prorate or limit coverage after transfer
Common Warranty Pitfalls
- Not registering the warranty – Many require registration within a certain period after installation
- Ignoring maintenance requirements – Failure to maintain siding (e.g., repainting within recommended intervals) can void coverage
- Misunderstanding coverage limits – Some warranties cover materials only, not labor to replace them
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