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Can an unlicensed handyman file a mechanics lien without a written contract in Colorado?

Anonymous General Contractor

I'm an unlicensed handyman who was contracted to remodel a three bedroom two bathroom dwelling. The property owner was aware of my licensing or lack thereof and proceeded anyway. I am an automotive technician(mechanic) by trade. The job is done. Materials were delivered and the work performed to a greater degree of skill. There was no written contract but I have texts going all the way back to.the beginning that reflect not only request but also approval of work performed. There were many delays in this project mostly due to property owner financial issues. She stated there was no money but had me continue work always stating she would find the money somewhere. Those promises were never kept causing great financial strain to myself. The owner waited until I was 99% complete with the job to breach the oral contract by informing me she wasnt going to pay me. I have all the text messages to prove that I was contracted to do the work at her request and also have over 1300 pictures of before during and after of this project. The place came out beautiful and I put in massive amounts of work ..there were many change orders that came late in the project causing further delays and ahe is now saying that i owe her money due to the delays even though it was on her end that these delayed were happening. What is my legal recourse if any and where do i begin and do I stand a chance at recovering the money owed to me.

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 1,003 reviews

Mar 18, 2020

It's crucial to put construction contracts into writing for a variety of reasons. And, it's never a good idea to perform unlicensed work when that work requires a license. With that being said, it still may be possible to force payment even if you're unlicensed and even when there's no written contract.

Demand letters

If an owner isn't taking your debt seriously, sending a payment demand letter can help to get their attention. Demand letters will usually contain legal threats, which will let the owner know you're serious about getting paid and willing to do whatever it takes to make sure that happens.

Notice of Intent to Lien

Mechanics liens are a powerful payment recovery tool, and that makes the mere threat of a lien quite powerful, too. Sending a Notice of Intent to Lien will let an owner know that a mechanics lien claim is coming if payment isn't made. And, because of the potential fallout from a lien claim (including possible foreclosure), owners can't afford to take the threat of liens lightly. What's more, Colorado is one of the few states which actually requires that a Notice of Intent to Lien must be sent in order to later file a lien claim. So, owners who receive a Colorado Notice of Intent to Lien should be that much more cautious about claims.

Filing a mechanics lien

The Colorado mechanics lien statute doesn't specifically require that claimants be licensed in order to file a valid and enforceable mechanics lien claim. So, unlicensed CO lien claimants may be able to pursue debts via mechanics lien. And, while Colorado does call for written contracts for construction projects exceeding $500, the lien statute doesn't explicitly say that mechanics liens can't be filed if there isn't a written contract. Certainly, though, a mechanics lien should be considered the nuclear option. And, if there's some other way to recover payment before a lien becomes necessary, that route will usually be preferable. If a mechanics lien does become necessary, these resources should be valuable: (1) Colorado Mechanics Lien Guide and FAQs; and (2) How to File A Colorado Mechanics Lien – Step By Step Guide To Get You Paid.

Collections

Yet another option for pursuing a debt could be to send it to collections. Though, that might be a challenge if there's no documentation that supports the existence of the debt. Still, it might be helpful to reach out to a Colorado debt collector to see about the viability of sending the debt to collections.

Legal claims, small claims court

Finally, legal claims like breach of contract or unjust enrichment might be on the table. And, consulting with a Colorado construction attorney could help to determine what legal claims might make the most sense here. Plus, if the claim is under $7,500 - taking the dispute to small claims court might be an option for streamlining legal claims.

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