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Planning Ahead: Considerations for Successful Mechanic's Liens in Colorado

Protect Your Mechanic’s Lien Rights: Common Calendaring Mistakes in Colorado

Top down view of a calendar and a small pocket watch on the table, representing how to calendar correctly in regards to mechanic's liens
A look at common calendaring mistakes and how to avoid them.

Mechanic's liens are essential tools for contractors and suppliers in Colorado, ensuring they receive payment for the labor, materials and supplies they provide. However, failing to adhere to specific timelines (and other considerations) can jeopardize these rights. Here’s a look at common calendaring mistakes and how to avoid them.

1. Understanding the Time Limits In Colorado, the timeline for recording a mechanic’s lien is crucial. Generally (and there are exceptions), a lien claimant must record a lien within four months after the last date base contract labor, services or materials were provided. Missing this deadline can prevent a party from pursuing a mechanic’s lien claim.

Suggestion: Set reminders for key dates in your project timeline, including the last date of base contract work and materials and the lien filing deadline. Don’t wait until the last minute to take action!

2. Failing to Provide Proper Notice Before recording a mechanic’s lien, contractors/suppliers must send a Notice of Intent to Lien. This notice must be sent to the owner of the property and general contractor at least 10 days before recording. Proper notice is essential to having a valid mechanic’s lien.

Suggestion: Keep a checklist of notice requirements and their respective deadlines. Use calendar alerts to act as a reminder as to when action needs to be undertaken.

3. Neglecting to Verify Information Accurate information is critical when preparing a mechanic’s lien. Errors in a property description or the owner’s name, for example, can lead to a mechanic’s lien not being valid.

Suggestion: If you opt to do your own mechanic’s lien documentation, double-check all information before recording. Perhaps set a calendar event to review project details and confirm accuracy.

4. Not Keeping Accurate Records Proper documentation is crucial for enforcing your mechanic’s lien rights. Failing to keep accurate records of work completed (or materials provided) and payments received can lead to error on mechanic’s liens which can make them invalid.

Suggestion: Maintain a detailed log of all communications, work performed (or materials delivered), and invoices sent. Use digital tools to track and organize this information.

Conclusion Protecting your mechanic's lien rights in Colorado requires diligence and attention to detail. By avoiding common calendaring mistakes (and keeping good records), you can secure your right to payment and otherwise maintain your rights effectively. Regularly review your processes and stay informed about any changes in lien laws to ensure compliance.


Should you have any questions, please contact us. We would welcome your call or email.


*This article is intended for informational purposes only and should not be construed as legal advice. Individuals involved should consult with legal professionals for specific guidance tailored to their circumstances.

 

 

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