Chapter 19 - § 19.1 • INTRODUCTION

• Jurisdiction: Colorado

§ 19.1 • INTRODUCTION

Mechanics' lien laws are meant to provide protection and security for those who supply labor, materials, and equipment to improve real property for private construction projects.¹ The theory behind the right to a mechanics' lien is that one who has increased the value of property as a result of labor or materials put into the property should have security in the form of a lien against the property.² Thus, "[t]he right to a mechanic's lien given by the statute is based upon considerations of natural justice, namely that one who has enhanced the value of property by attaching thereto his materials or labor shall have a lien therefor."³ And if the lien claimant properly and timely preserves and enforces its rights, it can seek to force a foreclosure sale of the property subject to its mechanics' lien in order to satisfy the indebtedness. Due to the threat of foreclosure and the parties who would be impacted by a foreclosure sale, mechanics' liens can serve as a great tool to encourage payment on private construction projects.

The purpose of this chapter is to provide the reader with the basics concerning mechanics' liens in Colorado. The reader will also find a selection of forms in the exhibits to this chapter. More comprehensive information concerning mechanics' liens can be found in Liens and Claims in...