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Mechanics' Liens in Colorado.

Business Credit

| March 01, 2001 | Gruskin, Mark D. | COPYRIGHT 2001 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

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.

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