Mechanic’s Liens

Q: What is a mechanic’s lien in Colorado?

A: A mechanic’s lien is a tool for contractors, subcontractors and others involved in a construction project to receive payment for their efforts in enhancing the property. Someone who has performed work on a property and has not received payment for that work, can file a mechanic’s lien on the property.

Q: Who can file a lien?

A: Specifically, under the Colorado mechanic’s lien law, “contractors, subcontractors, builders, and all persons of every class performing labor upon or furnishing directly to the owner or persons furnishing labor, laborers, or materials to be used in construction, alteration, improvement, addition to, or repair, either in whole or in part, of any [improvement] . . . shall have a lien upon the property. . . .” C.R.S. § 38-22-101(1).

Q: When can I file a mechanic’s lien?

A: The time limits for filing a mechanic’s lien must be strictly complied with or your right to the lien can be lost. Typically, the lien must by filed within four months from the day the last labor was performed or the last material was furnished by the person claiming the lien. Depending on weather material was furnished and the type of labor, the timeline might change. However, the typical period for filing a mechanic’s lien is four months.  Consult with a Colorado mechanic’s lien attorney to make sure you don’t miss your deadlines.

Q: Do I have to let the property owner know I am filing a lien?

A: Yes. Colorado requires that a notice be served before recording a lien. At least 10 days before filing a lien, the person claiming a lien must serve a “notice of intent to file a lien statement” on the owner of the property and the principal contractor of the project. The form of service and the information on the notice can also be crucial in perfecting a lien.

Q: If I get paid after recording the lien, do I need to do anything further with the lien?

A: When a person claiming a lien, who has filed a lien, is paid, the mechanic’s lien must be released from the public records. Otherwise, if a lien remains of record after it has been satisfied, Colorado statute provides remedies for those with interest in the property.

Q: What happens when I record the lien and still don’t get paid?

A: Once a person claiming lien files the lien statement, he/she may file a lawsuit to foreclose on the lien. Am action to enforce a mechanics’ lien must be brought within six months after the later of (1) the last date work was performed; (2) the last date materials were furnished; or (3) the date the building or improvement on the property was completed. The lien claimant should also file lis pendens with the clerk and recorder’s office where the property is located to provide notice that an action has been commenced regarding the property.

It is important to consult an Colorado mechanic’s lien attorney recording your lien claims, as timing, the parties involved and the actions claimed (like trust fund statute violations) can all affect your rights to payment.

Call us at 303-688-3045 to see how our Colorado mechanic’s liens attorneys can help you.