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COPYRIGHT 2001 National Association of Credit Management
NATURE OF LIEN RIGHTS
In Colorado, a mechanic's lien is only obtained when the claimant strictly follows the requirements of the mechanic's lien statute, C.R.S. [sections] 38-22-101, et seq. In general, any person who furnishes labor or materials for use in the construction of any improvements on the real property sought to be charged with the lien is entitled to file a lien based upon the labor and/or materials furnished.
PERSONS ENTITLED TO LIEN
Those persons designated in C.R.S. [sections] 38-22-101 are entitled to claim a mechanic's lien. The general contractor is also entitled to a lien.
* Each subcontractor or supplier should file their own lien and not rely on the general contractor. If this is not done, the owner can offset any claims against the general contractor, which can be to the detriment of the subcontractors.
* An architect is entitled to a lien for the preparation of plans even though the improvements are not constructed.
* A party furnishing contract labor is entitled to a lien.
* A second tier material supplier (a supplier to a supplier) is not entitled to the benefits of a mechanic's lien.
SPECIFIC ITEMS WHICH MAY OR MAY NOT BE LIENABLE
C.R.S. [sections] 38-22-101 sets forth those items that are lienable. In general, any person who furnishes labor or materials for use in the construction of any improvements on the real property sought to be charged with the lien, is entitled to file a lien based upon the labor and/or materials furnished.
A. Tools
Tools, which would not be consumed on the job, are not lienable. However, tools, which would be used and consumed on the job, are probably lienable.
B. Rentals
Rental equipment or machinery is a lienable item.
C. Interest
Interest is allowed at the rate provided for under the terms of any contract or agreement under which the labor or materials were supplied, and if no rate is specifically provided for, interest is allowed at twelve percent per annum. No matter what the applicable interest rate is, interest charges commence to run on the date that the in personam account becomes due. Post-judgment interest continues to accrue at the prejudgment rate.
D. Supervision
The services of a construction superintendent are lienable. However, such services performed off-site, e g., expediting material shipments to the job, may not be lienable.
E. Off-Site Work
Work need not be done on the job site to be lienable. A claimant is entitled to a mechanic's lien for material actually furnished under the contract to be used, although not actually placed in the building (the materials must, however, be...
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