Colorado Mechanics Lien Law Update
The filing of a Colorado mechanic’s lien can sometimes be rather tricky. So it’s important to get our arms around the requirements. A Colorado mechanic’s lien is primarily for general contractors, subcontractors, laborers, as well as material/equipment suppliers. But there can also be recording for architects, engineers and draftsmen. These are people who are involved in the supplying of designs, plans, plats, maps, specifications, drawings, estimates of cost, surveys, illustrating or superintendence, or who have rendered other professional or skilled service.
Equipment suppliers are also entitled to file a mechanic’s lien. As of 2000, Colorado also allows personnel agencies who provide staffing for a construction project. If you are a supplier of materials, you get a lien only if the material is both delivered to and “incorporated” (in other words, consumed or used) into the actual improvement.
Also, don’t forget the time limits for recording a Colorado lien are expressed in terms of months and not days. There’s a big difference between filling a lien within four months and, for example, 120 days. So, if the project is completed on June 1, the last date to file the lien in Colorado would be October 1. If it were 120 days, the last date would be September 28.
As is usual, if the last day to file lands on a weekend or holiday, unlike other states, the time to record does not extend (as with most states) to the next business day. That means you need to file the lien the business day before that weekend or holiday. So, if the project was completed on May 1, the fourth month thereafter would be September 1. But, because September 1 falls on a Saturday, you would have to file it the Friday before or by August 31.
For commercial projects, everyone, including the general contractor, subcontractors, and suppliers have for months after last furnishing labor or materials to file their mechanic’s lien. The time starts running for a GC on the completion of the overall project. For subcontractors and suppliers, it begins from the date in which they have last furnished labor or materials (not the date of the overall completion of the project). For example, assume you are an underground contractor and finish your work on May 1. The overall project is completed on December 1. The time begins running for the filing of your mechanic’s lien on May 1.
For residential projects, the general contractor has the same four months after completion of the overall project to file his or her lien. But for subcontractors and suppliers, the time is shortened–two months after completion of your portion of the work.
For laborers, the time is two months after completion of their work on both residential and commercial projects.
Anyone having further questions can call national lien will for a free initial consultation at 800-995-9434. For further information, visit the Colorado lien law summary.