Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Colorado, home improvement contractors are regulated to ensure consumer protection and fair business practices. Contracts for home improvement must be clear and comprehensive, including a detailed description of the work scope, materials, contractor's obligations, payment terms, completion timeline, insurance requirements, and provisions regarding mechanic's and materialmen's liens. Colorado law requires contractors to provide a written contract for any home improvement project over $1,000. This contract must be signed by both the homeowner and the contractor. The Colorado Revised Statutes Title 38, Article 22, governs mechanic's liens, ensuring that contractors and subcontractors can secure payment for their labor and materials. It is important for homeowners to verify that the contractor is licensed and insured according to local regulations. Additionally, homeowners should be aware of their right to rescind a home improvement contract within three business days under the Colorado Consumer Protection Act.