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Can a contractor file a valid lien for cost increases out side the terms of the contract?

ColoradoMechanics Lien

I am a home owner in El Paso County, Colorado. I had a detached garage built recently by a general contractor. He sent me a contract with the amount I was to pay, the scope of work, and a few terms and conditions mainly concerning change orders during construction. I signed the contract and returned it. Nowhere in the contract were any provisions to pay more than the agreed upon amount - no clauses about unforeseen inflation, supply delays, labor cost increases, or material cost increases. No clauses about the home owner liable for cost overruns. If there had been I would have asked for clarification as to my final liability or I would have refused the contract. Can the contractor file a valid lien for cost increases out side the terms of the contract? I have fully satisfied the terms of the contract and change orders on time and to the best of my knowledge, the GC paid the subs. Can the contractor file a valid lien for cost increases outside the terms of the contract?

4 replies

Jan 21, 2022

If there is a flat fee contract, you should owe nothing more than you agreed to pay. Were there additions or upgrades? What was the amount you paid. Consult with an attorney before you speak with the attorney to have a game plan in place.

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Jan 21, 2022
Thank you for your advice. There were change orders that I paid in full and on time. So all the money that was contracted was paid in full on time. I have recently talked with a lawyer who also agrees with your answer. In spite of paying in full, the contractor still wants $7400 which is way outside the contract. He offers no invoices to justify these charges - 'just pay it or else!' Thank you for responding to my question. I have never gone through something like this and we have done two remodels and had two homes built through the years. Times have certainly changed.
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Jan 23, 2022
I have another question: If I am dissatisfied with a contractor after I have signed the contract and paid the initial payment as requested and I want to terminate the contract, how can I do that? He filed for the building permit and after three weeks it was disapproved. The contractor has not contacted me about his failure or offered any remedy for refiling correctly, He has not answered my phone calls or texts. I have since done my own planning review with the building department and I have my permit package ready to go. Since signing the contract I have lost confidence that he can do this job or wants to. He has not done any work on site like deliver materials or site prep. I would like to terminate the contract and get my deposit back minus his permit expenses so far. Can I do that? How can I terminate a contract before the work actually gets started?
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Jan 24, 2022
It depends on the contract.
 
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