Mechanic’s Lien Settlement Pays Colorado Contractor in Full

When a contractor delivers quality work, payment shouldn’t be elusive. Unfortunately, many contractors find that collecting payment is often the hardest part of their jobs. Making a frustrating situation even more urgent is Colorado law, which limits the time contractors have to take legal action against a homeowner who fails to pay. 

Our client, an exterior contractor, furnished labor and materials to a property and completed the job, but wasn’t paid. With an outstanding balance and informal collection efforts stalled, the contractor reached out to Robinson & Henry to recover the balance. 

In Colorado, an unpaid contractor can file a mechanic’s lien to secure the debt against the property via foreclosure. But the window to begin this process is short and strict. A contractor who furnishes labor and materials generally has four months from their last day of work to record the lien, and Notice of Intent must be served at least 10 days before filing. Missing either window can void the claim entirely, which is exactly where contractors tend to forfeit their rights. 

Foreclosing on a lien is a last resort, and an owner has several ways to clear the debt before it ever comes to that, including paying in full, settling, or setting up a payment plan. In this case, our litigation attorneys helped the contractor reach a settlement with the homeowner to pay the principal balance, with interest, and our client’s attorney fees. With an agreement in place, we then released the lien, sparing both sides the cost and disruption of foreclosure.

If you’re a contractor who hasn’t been paid, our attorneys can help you evaluate your options before it’s too late to act. Call 303-688-0944 to schedule a consultation or book the appointment online.