Common Mistakes to Avoid When Filing a Mechanics' Lien in Colorado
Mechanics' liens are powerful tools for contractors, subcontractors, and suppliers in Colorado to ensure they get paid for their work on construction projects. However, the process of filing a mechanics' lien can be complex, and making mistakes along the way can jeopardize your ability to recover payment. In this article, we'll explore some common pitfalls to avoid when filing a mechanics' lien in Colorado.
Failure to Serve Notices: Colorado has specific notice requirements that must be followed before filing a mechanics' lien. For example, contractors and suppliers must provide a Notice of Intent to Lien to the property owner at least ten days before filing their lien. C.R.S. 38-22-109(3). Failure to serve this notice or serving it late can invalidate your lien. It's essential to understand and comply with all notice requirements to protect your lien rights.
Missing Deadlines: One of the most critical aspects of filing a mechanics' lien in Colorado is adhering to strict deadlines. Failure to meet these deadlines can result in the loss of your lien rights. For example, in Colorado, subcontractors and suppliers must file their lien within four months of the last date they provided labor or materials to the project. C.R.S. 38-22-109. Further, any action to foreclose a mechanics lien must be filed within six months from the last day that labor or materials were provided. C.R.S. 38-22-110. As such, it's crucial to keep meticulous records of when work was performed or materials were supplied to ensure you meet these deadlines.
Inaccurate or Incomplete Lien Documentation: The documentation required to file a mechanics' lien in Colorado is detailed and specific. Any inaccuracies or omissions can render your lien invalid. C.R.S. 38-22-128. Make sure to double-check all information included in your lien documents, including the property owner's name, legal description of the property, and the amount of the lien claim. Additionally, ensure that you have included all required attachments, such as invoices, contracts, and notices of intent to lien.
Not Understanding Lien Waivers: Lien waivers are commonly used in construction projects to waive or release lien rights in exchange for payment. However, it's crucial to understand the implications of signing a lien waiver and ensure that you are not inadvertently waiving more rights than intended. For example, signing an unconditional lien waiver before receiving payment can prevent you from pursuing further payment, even if the check you received bounces. Always read lien waiver documents carefully and consider consulting with a legal professional if you have any doubts.
Failing to Enforce the Lien: Once you have filed a mechanics' lien in Colorado, you must take the necessary steps to enforce it if payment is not forthcoming. This typically involves initiating a lawsuit to foreclose on the lien. However, if you fail to take action within the required timeframe, your lien may expire, and you could lose your ability to recover payment. Be proactive in pursuing enforcement of your lien to maximize your chances of getting paid.
Filing a mechanics' lien in Colorado can be a complex process, but by avoiding these common mistakes, you can protect your lien rights and increase your chances of getting paid for your work. Remember to pay close attention to deadlines, ensure the accuracy and completeness of your lien documentation, serve required notices, understand lien waivers, and take prompt action to enforce your lien if necessary. If you're unsure about any aspect of the mechanics' lien process, consider seeking guidance from a Colorado mechanics lien lawyer experienced in construction law. By taking these precautions, you can safeguard your interests and secure the compensation you deserve for your hard work and contributions to construction projects in Colorado.
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.