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Contractor Lien

ColoradoMechanics LienPayment DisputesRight to Lien

I have a contractor who threatened to place a lien on my property due to non final payment. Contractor finally completed the project in which I was promised in writing it would take one month to complete (contractor was 5 months late). Contractor also stated in writing he would deduct $100 per day for every day he was late in completing the project. I received the final bill and the $100 per day deduction was not included. I explained that to the contractor I was not going to pay the billed amount without the $100 per day deductions; however, contractor is disputing the claim and is now threatened to put a lien on my house. Can this contractor place a lien on my house for the billed amount/non final payment?

1 reply

Apr 7, 2020
A contractor can generally get their mechanics lien claim filed even if there's a dispute as to what's owed. County recorders don't have the authority to investigate each claim that's filed with their office - so the lien could certainly make its way into the property record, even if there's an issue with the claim. Granted, if filed, the owner would certainly have the opportunity to dispute the lien claim if they believe the claim is overstated or inaccurate. If the claim is overstated, then that could be the basis for getting the lien tossed out as invalid and unenforceable. Plus, if the court finds that the lien is fraudulent or purposefully exaggerated, serious damages would be in play. With all of that being said - it sounds like your contractor created a liquidated damages for delay clause in the contract. And, if they put that into writing - it may well be enforceable to reduce the amount of the claim. Finally, I think these articles will be useful: (1) I Just Received a Notice of Intent to Lien – What Should I Do Now?; and (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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