Like every state, Colorado has its own unique requirements for construction professionals who need to file a mechanics lien in colorado. When doing a project in a state for the first time, it’s always wise to review their laws so you’ll know what deadlines you just can’t miss. One difference in filing a lien in Colorado is that you are not required to be licensed to perform the work in order to file a lien. However, ignoring any state’s licensing laws can lead to other complications so it’s generally wise to check those out before beginning a project.
- Preliminary Notice: A notice of intent, with a copy of the lien that you plan to file, needs to be sent 10 days before you file the lien. This needs to go to the property owner or his agent and should be delivered either personally or by registered or certified mail, return receipt requested. As always, be sure to keep a copy of the notice and lien as well as the mailing receipt in your records so that you’ll be able to show that you complied with this requirement.
- Mechanics Lien: Regardless of whether you’re the prime contractor, a subcontractor, or a material supplier, your mechanics lien must be filed within 4 months, or 120 days, of the last date you performed labor or delivered materials. This timeframe is shortened to 2 months if you only provided labor. Also worth noting is that there are a few other situations that shorten the timeframe as well, such as working on a one or two family home with a bona fide purchaser. You can extend this timeframe in some situations by filing a Notice of Extension with the county’s clerk.Once you file your lien in Colorado, you don’t need to send any notice that the lien was filed since you sent your preliminary notice right before you filed it. Make sure your lien has all the necessary information and complies with the county’s preferences before filing. For example, for a mechanics lien in Colorado to be valid, it must be notarized by a notary public.
- Canceling the Lien: Hopefully, filing your mechanics lien leads to prompt payment of your account. Once you receive that, you are responsible for filing an acknowledgment of satisfaction within 10 days.
- Enforcement Actions: Once your lien is successfully filed, you have 6 months to begin a collections action. At this point, if it goes in front of a judge, they may choose to award extra amounts such as attorney’s fees.
For help making sure you’ve got the right timeline for the project you’re working on, or if you’d just like someone to help you manage the process, reach out to the attorneys at National Lien & Bond. We have the expertise to give you the legal advice you need so that you can take timely actions to protect your right to be paid.