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Can you direct me to a Lien Waiver that fits the situation described below?

ColoradoLien Waivers

I'm a property owner who hired a GC to build a house on my property. when the GC exceeded the total estimate for the house by $80K, I told him that I was terminating the current construction contract and offered him a new one. He refused this offer and refused to sign the Lien Release that I gave him, and packed his tools and left the job site. He sent me a last invoice for work done. There are 4 subs who are owed money on that invoice. Since I do not now trust the GC, I intend to pay the subs myself. I need a Lien Release that will give me peace of mind that these subs will not file a lien against me in the future. I have paid for the cost of construction myself there is no loan. Can you help?

1 reply

Apr 28, 2022

I am sorry for the issues but you could have a defense related to any lien filings by the subs. Colorado has a specific statutory exception to mechanics’ liens regarding single-family dwelling units. Under this exception, it is a complete defense to the enforcement of any mechanics’ lien if the owner has paid its principal contractor in full. For an attorney to know if this applies would require of the contract and more facts. 

As to the lien waivers, you can retain a construction attorney and they can draft these lien waivers. This attorney can also assist in the event the GC files a lien or threatens suit. 

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