Mechanic's Liens in Colorado

- by Michael J. Glade, Construction Law

In today's economy owners and developers of private construction projects are failing at an alarming rate to make timely payment to contractors, subcontractors and suppliers that they employ. One of the most effective tools to secure collateral and payment in such instances is the mechanic's lien.

With certain exceptions, the Colorado Mechanic's Lien Act requires that a mechanic's lien be recorded within four months of the date that the contractor, subcontractor or supplier performed its last work or last supplied material or equipment. Recording a mechanic's lien assists in securing the real property upon which improvements were made as collateral. The lien claimant must serve notice of its intent to record its lien at least ten days prior to recording the lien. Finally, the lien claimant has six months from the date that last work was performed or material supplied to file a lawsuit to foreclose its lien and to record notice of its lawsuit with the Clerk and Recorder of the County were the real property is located.

Although an effective tool, there are numerous pitfalls in meeting the deadlines for recording a mechanic's lien, for accurately drafting the lien, and for correctly serving the lien. Lien claimants should not attempt to file a mechanic's lien without the assistance of legal counsel familiar with mechanic's lien law. Even experienced construction lawyers confront irregular lien circumstances on a regular basis that require research to insure that a lien claim is correctly perfected.

The above information should not be used as legal advice.