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What is the maximum amount of late fee allowed by Colorado law

ColoradoConstruction Contract

I've put on a contract a 5 % daily late fee. As well as "an afermative response email, signiture, or the continuation of labor are all accepenced of this contract. The clients "fired me, because I was sick one day and didn't call. I had been sick the while project and asked for a couple days of they were not having it. They Sued me because I wouldn't return tjier cabinet doors without payment. I counted sured for non paymenbt . Us that 5% daily late fee excessive under CO law. Or is it maxed out at the cost of what they owe me or cost of total project?

1 reply

Dec 19, 2019
Interest penalties for late payment on construction projects are typically regulated by the state Prompt Payment laws. However, the prompt payment provisions in Colorado only apply to public works projects. On Colorado private construction projects, those will be regulated by the terms of the contract itself. So whatever the parties agree to within the contract terms, will govern how payments will be made or penalized. As a general example though, the average prompt payment interest penalties are around 1.5% per month. Given the circumstances, it may be time to reach out to an attorney to review your contract and give you advice on how to proceed. A good place to start is the CO Bar Association Lawyer Referral Service or Avvo.com.  Good luck!
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