Are you confused by liens? Does the process by which to file them in your state leave you with more questions than answers? We’re here to take away the complexity and confusion and give it to you straight. If you work in Colorado and need to know the lien laws, this is the place for you. Here, we break down exactly what the state of Colorado requires of you to properly file a valid construction lien or bond claim.
How to File a Bond Claim in Colorado
- A bond is required for all state projects in excess of $100,000 and $50,000 for local public projects.
- Must file an action on the bond within six (6) months of final completion.
- No bond claims for Place 4* or below Subcontractors or Material Suppliers.
- You can file a lien on funds for amounts due to Place 1* Contractors on public works projects. The claim must be made before the date of final settlement. The date of final settlement will be published in the local newspapers where the work was performed, ten (10) days before the final settlement is made. You must file suit against the Place 1* Contractor within ninety (90) days of making the claim or the funds can be released to the Place 1* Contractor.
How to File a Lien in Colorado
- A suit to foreclose must be brought within six (6) months of the last time you supplied work and/or materials.
- You must send a notice of intent to file a lien at least ten (10) days before you file your lien statement.
- Liens must be filed within four (4) months of the last time you worked and/or provided materials or two (2) months after final completion, or whichever comes first.
- You can also send a notice to disburse, which means the bank, or the Owner must pay you before they pay the Owner or the Place 1* Contractor.
If you work in Colorado, it is integral for you to commit these laws to memory and follow the steps set by your state when filing all future liens. Your leverage only works when your liens and bond claims are valid. Master Colorado's Lien Laws by listening in to The Quit Getting Screwed Construction Podcast. If you would like someone else to take care of filing your Colorado lien or bond claim, and do it the right way, contact an experienced Colorado lien attorney who knows construction law. Our sister company, The Cromeens Law Firm, has a 90% success rate of collections before having to foreclose on a lien, saving you costly legal fees. You owe it to yourself to protect your pay.
*The “places” referenced in the rules above correlate to the Construction Food Chain Chart from Karalynn Cromeens’ book,
Quit Getting Stiffed. The chart can be found here to use when following these lien and bond rules.