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Colorado Lien Waivers Guide and FAQs

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Colorado Lien Waiver FAQs

Colorado Lien Waivers Overview

Colorado Lien Waiver Rules

  • Rules At A Glance
  • Top Links
lien waivers not regulated
No Specific Form

Colorado does not require any specific or statutory lien waiver form. Any form may be used.

lien waivers do not need to be notarized
Notarization Not Required

Colorado lien waivers are not required to be notarized, and there is no practical benefit to notarization.

Can Waive Rights in Contract

Colorado allows parties to contractually agree to waive lien rights prior to the job, but no party can waive any other party's lien rights.

Can Waive Rights Before Payment

Colorado allows parties to waive the right to lien prior to payment by specific agreement. Such an agreement is only binding on the parties to the agreement.

Lien waivers are pretty complex documents. But they are also unassuming because of how frequently they get exchanged on construction jobs across the country, and in Colorado. A lien waiver is basically a receipt that payment has been made for work or materials on a job. These documents are exchanged at the time of payment, and commonly attached to subcontractor pay applications or vendor invoices.

There are different types of lien releases for different types of situations. And these documents have significant consequences for everyone on a job — as it connects directly to everyone’s right to cash! Also, one pesky aspect of lien waivers is that the process of sending, requesting, tracking, and collecting lien waivers is an administrative pain that slows down the payment on a project.

Knowing everything you can about lien waivers will allow you to make your process faster. And if your process is faster, your cash will move faster; and that’s good news for everyone on the project!

Colorado lien waiver laws

Colorado lien waivers are unregulated. This means the state does not have specific laws regulating the exchange of lien waivers on construction jobs, or the specific forms themselves. Many states laws set out the actual lien waiver form template that construction job participants must use. Colorado is not one of those states.

The lack of regulation actually makes exchanging lien waivers more difficult in Colorado, and riskier. This slows down the construction payment process. Plus, lien waivers can be a source of confusion with lots of room for error. Below are some frequently asked questions about the lien waiver laws and requirements in Colorado.

Free Colorado Lien Waiver Template & Forms

Colorado does not have regulated lien waiver forms.  These are easy to use and easy-to-agree upon lien waiver forms that you can use on a Colorado construction job. The forms provided here for free by Levelset are compliant with the Colorado rules. You can download them free, or use our free system to send or request your compliant Colorado lien waiver form.

Free Colorado Lien Waiver Forms

Colorado lien waiver forms to make the exchange process easy.

Colorado Final Conditional Lien Waiver Form - free from

Colorado Final Conditional Lien Waiver Form

This co final conditional waiver (also called a final conditional lien release) should be used when the final payment for a project is expected but...

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Colorado Final Unconditional Lien Waiver Form - free from

Colorado Final Unconditional Lien Waiver Form

This co final unconditional waiver (also called a final unconditional lien release) should be used when the final payment for a project has been made...

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Colorado Partial Conditional Lien Waiver Form - free from

Colorado Partial Conditional Lien Waiver Form

This co partial conditional waiver (also called a partial conditional lien release) should be used when a progress payment on the project is expected. There...

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Colorado Partial Unconditional Lien Waiver Form - free from

Colorado Partial Unconditional Lien Waiver Form

This co partial unconditional waiver (also called a partial unconditional lien release) should be used when a progress payment on the project has been received....

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Colorado Lien Waiver FAQs

Lien waiver laws vary from state to state. In Colorado, contractors, suppliers, lenders, and other construction job participants must pay close attention to the lien waiver documents exchanged since lien waivers are unregulated. Lien waivers are exchanged a lot in Colorado. On nearly every project across the state, job participants are attaching lien waiver forms to pay applications. It's important to get the lien waiver exchange right. For some insight on what can go wrong when even little things are askew, check out this article on the 3 Dangers of Lien Waivers. Also, below are some frequently asked questions about the lien waiver laws and requirements in Colorado.

Colorado Lien Waiver FAQs

Do I need to use a specific lien waiver form in Colorado?

No, Colorado does not require or have statutory forms for lien waivers. Because the form and content of lien waivers aren’t regulated under Colorado’s lien laws, careful attention should be given to the actual terms of the waiver to ensure you’re not waiving more than intended.

• See: Should You Sign That Lien Waiver?

What are the requirements for an Colorado lien waiver? What makes a lien waiver binding?

In order for a Colorado lien waiver to be valid and enforceable, it must clear and unambiguous, and specifically  express an intent to waive lien rights. Also, waivers must contain a statement that, “all debts owed to any third party by the person waiving the lien rights and relating to the goods or services covered by the waiver of lien rights have been paid or will be timely paid.”

• Note: if the waiver is found to be ambiguous, it will only waive rights in the amount of payment actually received. –Ragsdale v. United Bank

Furthermore, parties may not bind third parties by the lien waiver agreement.

Are unconditional waivers prohibited in Colorado?

No, as long as the lien waiver is clear and unambiguous, an unconditional lien waiver is still valid and enforceable. However, if you have yet to receive payment, a conditional waiver is always the safer option.

• See: Conditional v. Unconditional Lien Waivers, What’s the Difference?

Can a contractor or supplier waive their lien rights in their contract?

Colorado is just one of two states that currently allow lien rights to be waived by contract prior to performance; also referred to as “no-lien clauses.” Contractors in Colorado should review the terms of their contract carefully to determine if such a clause is present.

• See: GC’s on jobs are putting language in the contract that says I cannot file a lien on the job under any circumstances, or send out any notices to the owner without their permission. Is that legal?

Furthermore, there are no restrictions on waiving lien rights in advance of payment either.

Must a Colorado lien waiver be notarized?

No. Colorado does not require lien waivers to be notarized in order to be effective.

• See: Is Colorado a notary state?

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How to file a lien in Colorado

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