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Home>Levelset Community>Legal Help>Commercial Construction in CO - a 2nd tier supplier is owed for invoices slated for this site, although they can't be. Sub is designating to our job, but picking up, not getting delivered. It is obvious he is trying to buy material for another of his projects. What rights do we have?

Commercial Construction in CO - a 2nd tier supplier is owed for invoices slated for this site, although they can't be. Sub is designating to our job, but picking up, not getting delivered. It is obvious he is trying to buy material for another of his projects. What rights do we have?

ColoradoMechanics Lien

Explanation in question. A sub is getting material, designating it when picking up at supplier for a job he has with us. Based on timing and project, there is no way it can be. The supplier is obviously owed, but how can we keep a lien from going on the incorrect project?

1 reply

Aug 10, 2018
I'm sorry to hear about that. The best bet may be to correspond with both the supplier and the sub to clear up the dispute. If that's not possible, informing the supplier of the subcontractor's actions could be helpful to explain the scenario and hopefully fend off a lien claim. If the supplier is dead-set on a lien filing, sending them a letter informing them (1) that any subsequent lien filing would be improper and potentially even fraudulent, and (2) you and/or the owner will pursue legal remedies against the supplier should go a long way to fend off a lien claim. That wouldn't just be puffery, either - a mechanics lien for materials not actually incorporated into the job site would very likely fail, and if a party files a mechanics lien after being informed that the materials were never used at the project, the argument could be made that a subsequent lien would be fraudulent. But, if the situation is promptly explained to the supplier and they are able to get to the bottom things with their sub, it would seem unlikely that the situation would escalate much. Finally, informing the property owner of the subcontractor's actions could also be helpful - no one wants to deal with a lien popping up out of nowhere, and preventing such a lien by notifying the owner will both save headaches and help build relationships.
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