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Can I include an additional 5% due upon completion if final walkthrough wasn't performed?

ColoradoMechanics Lien

We finished work on a project. Our contract states that the final 5% is due upon completion after the final walkthrough. However, because of issues with the owner, the final walkthrough was never completed. All work was performed otherwise to the best of our understanding. Can I include the final 5% in my lien amount?

1 reply

Jan 6, 2021

Generally speaking, a timing provision regarding final payment shouldn't block mechanics lien rights. Meaning, if you've fully completed work on the project, the full project price should be lienable - even if the timing of your payment wasn't supposed to happen until a final walk through occurred (particularly when the owner refuses to allow the walk through).

What's more, even if the owner took issue with a portion of the lien claim, keep in mind that Colorado mechanics liens can be amended as long as the filing deadline hasn't passed. So, if that 5% is the only point of contention on the lien, that part could plausibly be reduced by an amendment, and the claimant could seek to collect it some other way. But, still - including the full price on a lien where the work was fully performed is typically appropriate.

For further discussion on CO liens: Colorado Mechanics Lien Laws: Guide and FAQs.

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