Chapter 2 - § 2.2 TIMING TO RECORD A LIEN

• Jurisdiction: Colorado

§ 2.2 TIMING TO RECORD A LIEN

§ 2.2.1—Basic Time Limits

The time limits for filing a lien claim are crucial and must be strictly complied with or the right to a lien will be lost. The time limit for filing a lien claim depends on what a party has supplied to a construction project (material, labor, or both) and whether he or she is classified as a principal contractor, subcontractor, supplier, or laborer.

If the lien is claimed for labor or work by the day or piece, but without furnishing materials, the lien must be filed after the last labor for which the lien is claimed has been performed, but before two months pass from the day the improvement is complete.³⁴ For all other mechanics' liens, the lien must be filed before four months have passed from the day the last labor was performed or the last material furnished by the lien claimant.³⁵ This four-month period is the more typical period.

Performing "trivial" work following completion does not extend the filing deadline.³⁶ "A lien claimant may not extend the filing period by doing work related to a 'trivial imperfection in or omission from' work or construction performed on a project deemed completed."³⁷ But performing work to correct someone else's errors can potentially extend the deadline.³⁸

§ 2.2.2—Extensions

A lien claimant may extend the deadline for recording its lien by filing a notice of extension. See Exhibit 2A, "Notice Extending Time to File Mechanics' Lien Statement." Such notice must include "the legal description or address or such other description as will identify the real property; the name of the person with whom he has contracted; and the claimant's name, address, and telephone number."³⁹

Filing such a notice will "extend the time for filing of the mechanic's lien statement to four months after completion of the structure or other improvement or six months after the date of filing of said notice, whichever occurs first."⁴⁰ The effect of this is that general contractors cannot take advantage of the right to extend the deadline. Instead, this statute benefits those who performed work or supplied materials early on during the project.

This notice automatically expires if the improvement is completed within six months of the filing of the notice. If within six months of filing the notice the improvement has not yet been completed, however, the contractor "may file a new or amended notice which shall remain effective for an additional period of six months after the date of filing or four months after the date of completion of [the] improvements, whichever occurs first."⁴¹

If the agreement to provide labor or materials is terminated, the owner may demand that any person who filed a notice of extension file a termination of said notice. See Exhibit 2B, "Termination of Notice Extending Time to File Mechanics' Lien Statement." The termination must "identify the properties upon which labor has not been performed or to which laborers or materials have not been furnished and as to which said...