Colorado Lien Waiver Rules
- Rules At A Glance
- Top Links
No Specific Form
Colorado does not require any specific or statutory lien waiver form. Any form may be used.
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!
- For more on lien waivers in general, see: The Ultimate Guide to Lien Waivers in Construction
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.