Colorado Lien Amount Rules: What Can and Cannot Be Claimed in a Mechanics' Lien
When a mechanic’s lien dispute begins, the conversation almost always turns to the number on the page: the dollar amount the contractor claims is owed. For homeowners, this figure often comes as a shock—sometimes far higher than expected, sometimes containing charges they’ve never seen before. For contractors, the number represents weeks or months of unpaid labor, materials, and disruption to the business.
And because Colorado’s mechanic’s lien law gives contractors extraordinary leverage—the ability to cloud title and potentially foreclose on property—the law also places very real limits on what can be included in that number. Colorado demands honesty, precision, and restraint in lien claims. Anything else can jeopardize the entire lien.
So the question is not simply how much you are owed. The real question is: how much of that amount is lienable under Colorado law?
If you want an overview of lien law more broadly, our Colorado Mechanic’s Lien Guide for Homeowners provides the big picture. But this article focuses on something more specific: the rules governing the dollar amount contractors can lawfully claim—and the consequences of claiming too much.
What the Statute Says About Lienable Amounts
Colorado’s lien provisions begin with a straightforward principle: a contractor, subcontractor, or supplier may assert a lien for the value of labor, materials, equipment, or professional services actually furnished to improve the property.
The statutory basis is found in C.R.S. § 38-22-101, which ties lien rights to actual improvements—not to disputes, not to delays, and not to theoretical damages.
This distinction is crucial. A mechanic’s lien is not a catch-all remedies tool. It is a payment security tool specifically for improvements that benefited the property.
Lienable Amounts: The Core of a Valid Lien
To be lienable, an amount must be:
Tied to labor, materials, or equipment furnished to the property,
Reasonable in value, and
Consistent with what was authorized or agreed upon, whether by written contract or verbal understanding.
Courts interpret “reasonable value” by looking at invoices, market rates, and the context of the work performed. If the claimant cannot tie a charge to actual improvement, that charge is not lienable—even if the contractor believes it is owed under contract principles.
What Cannot Be Included in a Mechanic’s Lien
This is where disputes often shift from financial disagreements to legal vulnerabilities. Many contractors assume they can include everything they believe they are owed, but Colorado law is much narrower.
Unapproved or Disputed Change Orders. If the owner did not authorize additional work, those amounts may be owed under a breach-of-contract theory, but they may not lienable.
Delay damages, overhead, lost profits, or consequential damages. Lien law does not cover lost opportunities, business disruption, or penalties.
Work that does not improve the property. Administrative tasks, proposal preparation, initial project consulting, and off-site work may be compensable but not lienable.
Amounts for incomplete or defective work. A contractor cannot claim the full contract price if substantial work remains undone or must be corrected.
Inflated or punitive charges. Artificially increasing charges to “apply pressure” not only invalidates the lien but can expose the filer to slander of title claims.
If you want to understand the requirements for preparing an accurate lien statement, you may want to review What Documents Must Be Included in a Colorado Mechanic’s Lien Claim?.
Why Overstating a Lien Is So Dangerous
Colorado courts take inflated liens very seriously. Filing a lien that contains unreasonable or knowingly overstated charges can expose a contractor to:
Slander of title,
Attorney fees,
Costs, and
Potential removal of the lien with prejudice.
Homeowners facing inflated liens often turn to litigation quickly, and judges tend to scrutinize lien amounts with care. A contractor who files an inflated lien may spend more time defending the lien’s validity than pursuing payment.
Conversely, a contractor who files a carefully supported lien—with documentation, authorization, and clear connection to property improvements—enters the dispute with substantially more credibility.
If you are a homeowner facing a lien you believe is inflated, our article How to Dispute a Mechanic’s Lien Filed Against Your Home can help frame your next steps.
Partial Performance and Substantial Completion
Contractors sometimes ask whether they can file a lien if they didn’t finish the job. The answer is yes—but only for the value of work actually performed. Colorado does not allow claims for unfinished contract balances. Instead, the lien must reflect the proportionate value of completed work.
Similarly, if a contractor performed work that must be redone because of quality issues, the lienable amount may be reduced accordingly.
These nuances are why lien statements often require careful evaluation before filing. A claim that blends lienable and non-lienable amounts risks undermining the entire filing.
Materials Not Actually Incorporated Into the Property
Suppliers must take note: Colorado requires that materials be furnished to and intended for the property. Materials delivered to a contractor’s warehouse but not actually used (or intended for use) on the project may not be lienable. The key is whether the materials contributed—or were meant to contribute—to the improvement.
Again, authorization and documentation matter far more than paperwork quantity.
How Contractors Should Approach the Lien Amount
A mechanic’s lien should be treated as a sworn statement of truth—not as a negotiation tactic. The number should reflect only what the statute permits, supported by documentation and tied directly to property improvement.
Contractors who take this approach not only protect their lien but also increase the likelihood of early settlement. Homeowners who see a well-supported lien tend to respond more reasonably than those faced with aggressive or inflated demands.
If you’re unsure whether your lien amount is proper—or if a lien has been filed against your property—we routinely advise both contractors and homeowners across Colorado. And for the broader context, our Colorado Mechanic’s Lien Guide for Homeowners remains the central resource.
The information provided on this website is for general informational purposes only and should not be construed as legal advice or legal opinion. You should not act or refrain from acting on the basis of any information provided on this website without seeking legal advice from an attorney.