Our Guide to Preliens, Waivers, Mechanic's Liens, and Bond Claims in Colorado

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This is an overview of the state's statutory approach to lien law and what contractors might want to focus on to ensure lien rights are established timely, correctly, and effectively.
While we are happy to provide this guide as a quick reference, we HIGHLY encourage that you work with a construction attorney to help you with your particular circumstances in our complex construction lien law environment.
 

Colorado Quick Overview

Pursuant Code   Colo. Rev. Stat. §§ 38-22-101 et seq.
Prelien Required for Private/Commercial Projects   No, but may be beneficial
Prelien Required for Public Projects   No
CO Statutory Relief   Full Price
Lien Milestone Event   Last furnishing/last invoice
Lien Enforcement Deadline   120 to 180 days
Waivable Lien Rights   Yes
Supplier to Supplier Rights   Likely No
Prelien Document Name(s)   Notice to Owner, Disburser Notice
Prelien Minimum Information   Copy of the lien statement that will be filed, including a legal property description, amount claimed, name of the owner, and other parties involved.
Prelien Minimum Notifications   Owner (mandatory), Prime Contractor (if not the claimant)
Prelien Recording Requirement   No
Prelien Notarized   no

Understanding the Prelien Process on Construction Projects in Colorado by Role

Colorado does not require a traditional preliminary notice before furnishing work or materials. However, lien claimants must serve a Notice of Intent to Lien (along with the lien statement) on the property owner at least 10 days prior to recording a mechanic's lien. This rule applies to all parties including prime contractors, subcontractors, and material suppliers.

Mechanic's Liens in Colorado

In Colorado, a lien claimant must first serve a Notice of Intent to File a Lien at least 10 days before recording the lien statement. The lien must be recorded within 4 months after the last furnishing of labor or materials. Suit to enforce the lien must be initiated within 6 months after completion of the improvement or last furnishing.

Bond Claims in Colorado

On public projects, claimants must pursue recovery under a payment bond rather than liening the property. Notice procedures and deadlines vary based on whether the project is federal, state, or municipal. Typically, a notice of claim against the bond must be served within 90 days of last furnishing labor or materials, with suit generally within 6 months.

Construction Lien Waivers in Colorado

Required Format:   Colorado does not require any specific statutorily required verbiage to be valid but be sure to check with your constuction attorney and consult any relevant state statutes.
Required Notarization:   Colorado does not require waivers to be notarized.
Lien waivers in Colorado are generally governed by contract. There is no statutory form or requirement for conditional or unconditional waivers, but they must not waive lien rights in advance of furnishing labor or materials.
Learn more about waivers here, including the when and how to use various types of waivers, the difference between a Lien Waiver and a Lien Release, what to look for before signing, and more.
  • As a client, you'll have free access to our system that easily creates statutorily correct lien waivers.
  • Through our technology partner Prelien Pro, you can also access best-in-class lien waiver management software, allowing you to easily track, collaborate, and share lien waivers with all your trade partners.

Other Important Construction Links in Colorado

Frequently Asked Questions (FAQs) on Colorado Lien Processes for Contractors

Is a preliminary notice required at the start of a Colorado construction project?
No, a preliminary notice at the start of the project is not required. However, a Notice of Intent to Lien must be served 10 days before filing a lien.
How long do I have to file a mechanics lien in Colorado?
You must file a lien within 4 months of last furnishing labor or materials. Labor-only claimants have a shorter, 2-month period.
Do I need to serve the owner before filing a lien in Colorado?
Yes. A Notice of Intent to Lien, along with a copy of the intended lien statement, must be served on the owner at least 10 days prior to recording the lien.
Can a material supplier file a lien in Colorado?
Yes. Material suppliers who provided materials incorporated into the project have lien rights if the Notice of Intent procedures are followed.
Is a bond claim the same as a mechanics lien in Colorado?
No. On public projects, you must file a bond claim against the project's payment bond rather than a mechanics lien against the property.

We Set the Standard for the Construction Industry

Not only do we provide you with the tools, knowledge, and team to ensure you feel confident your rights are secured, but we're prepared for the trenches and ready to coordinate with your legal team when things "go sideways" on one of your projects.
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