Mechanic’s Liens in Colorado

In Colorado, a mechanic’s lien is a powerful legal remedy that allows contractors, subcontractors, suppliers, and certain design professionals to secure payment for work or materials that improve real property. When payment is withheld, filing a mechanic’s lien against the property creates a legal claim that can ultimately lead to foreclosure if the debt remains unpaid. Because mechanic’s liens are governed by strict statutory requirements, even a minor procedural error can render the lien invalid.

In most cases, a written contract isn’t necessary to file a lien. However, Colorado law mandates that contracts between general contractors and property owners exceeding $500 must be in writing. While licensing isn’t required to assert lien rights, performing unlicensed work that legally necessitates a license can lead to additional legal repercussions. Seeking guidance from an experienced lawyer can provide the necessary expertise for a successful filing of a mechanics lien.

Filing Requirements and Deadlines

To file a mechanic’s lien in Colorado, the claimant must first serve a Notice of Intent to Lien on the property owner, and, if applicable, the principal contractor, at least ten days before recording the lien. The notice must be delivered either by personal service or certified mail, return receipt requested. After this ten-day period has passed, the claimant may record a notarized Lien Statement in the office of the county clerk and recorder where the project is located.

The Lien Statement must include the name and address of the property owner (or a statement that the owner is unknown), the claimant’s name, a description of the labor or materials provided, the amount claimed, and a sufficient description of the property. A full legal property description is not required, but courts expect the property to be clearly identifiable- best practice is to include both the legal description and the street address. The statement must also include an affidavit proving service of the Notice of Intent.

The filing deadline is generally four months after the last labor or materials were furnished. For laborers who supplied only labor, the deadline is reduced to two months. On one- and two-family homes, the four-month deadline is shortened to two months if a bona fide purchaser has acquired the home. In limited cases, the filing period may be extended by recording a Notice of Extension of Time to File Lien, which may give up to six months, but this option does not typically apply to owner-occupied residential properties. Working with a skillful lawyer to decipher your situation can bring peace of mind through a smooth lien filing process.

What a Mechanic’s Lien Secures

A properly filed mechanic’s lien allows the claimant to recover the unpaid contract balance and interest, which may accrue at the contract rate or, if none is specified, at 12% annually under Colorado law. However, claimants may not include extraneous charges such as late fees, collection costs, or attorney’s fees in the lien amount. Overstating the amount owed, or filing a lien for more than is justly due, can invalidate the entire lien and expose the claimant to liability for court costs and legal fees.

Mechanic’s liens in Colorado are “full price” liens, meaning the claimant can recover the entire amount owed, even if the property owner has already paid the general contractor. However, for owner-occupied single-family residences, recovery is limited to the unpaid balance still owed by the owner to the general contractor.

Once satisfied, the lien claimant is obligated to file a satisfaction of lien within ten days of a written request. Failure to do so can result in penalties of $10 per day for every day the acknowledgment is delayed.

Enforcing and Prioritizing the Lien

Recording a lien does not guarantee payment, it must be enforced through a foreclosure action. A claimant has six months from the last date of work, the last date materials were delivered, or the date of project completion, whichever is latest, to file a foreclosure lawsuit. Failure to do so within this timeframe results in automatic expiration of the lien, and the claim becomes unenforceable.

If the lien is valid and timely enforced, it has priority over certain later-recorded liens or encumbrances. A Colorado mechanic’s lien “relates back” to the commencement of work under the original contract between the owner and the first contractor. As such, it can take precedence over subsequent liens or mortgages- unless the lien holder had actual notice of the earlier encumbrance. Priority disputes often turn on whether competing interests were recorded before or after the date the project commenced. Sound legal guidance can successfully guide you through the enforceability of a lien.

The Importance Of Legal Guidance

Missing a deadline, failing to serve proper notice, over-claiming the lien amount, or omitting required information in the Lien Statement can all invalidate the lien and forfeit your right to collect. Even seemingly minor errors, such as failing to notarize the statement or improperly identifying the property, can be fatal to your claim.

It is not required to send a notice after the lien is recorded, but it’s often a practical step to ensure the property owner is aware of the filing and to encourage resolution. Amending a lien is allowed before the filing deadline passes, though certain changes, such as correcting names or property descriptions, may require a new Notice of Intent. The lien must be recorded in the county where the property is located, and each county may have unique administrative rules, so verifying procedures in advance is important.

Mechanic’s liens are among the most effective tools for securing payment in Colorado construction projects, but their power lies in their precision. A skillful lawyer can help maximize your chance of recovering the money you’ve earned by helping you successfully record a compliant lien.

How GLO Helps Clients Navigate Mechanic’s Liens

At GLO, we guide clients through every aspect of the mechanic’s lien process. For contractors and suppliers, we help preserve lien rights by ensuring compliance with all notice and filing requirements, avoiding technical mistakes that could jeopardize payment. For property owners, landlords, and developers, we assist with issuing timely and legally effective notices, defending against improper or surprise liens, and keeping title clear for future sales or financing. We offer strategic advice on whether to contest, settle, or enforce liens, always with a focus on protecting our client’s financial interests and minimizing risk.

Mechanic’s liens are a double-edged sword, powerful when used correctly, but dangerous when misunderstood or mismanaged. Because Colorado’s lien laws are highly procedural and unforgiving, early legal guidance can be the key to avoiding disputes or resolving them efficiently. Whether you’re asserting your right to be paid or defending your property from a lien, GLO provides the experience and clarity you need to move forward with confidence.

Contact GLO today to protect your lien rights- or your property- by navigating Colorado’s complex mechanic’s lien laws with confidence and clarity.