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Do we need to file a claim or intent?

We are a rental material supplier and have reached the 120 days after material last delivered to the project. Our customer has paid their invoices and the material is not ready to be returned. Since we will pass the 120 days do we need to file the claim or intent? If not, what is the process for protecting our lien rights going forward?

1 reply

Nov 15, 2018

That's a fair question. First, where all invoices have been paid and there's no current dispute over payment, a lien claim or notice of intent to lien is typically unnecessary. Further, it's important to understand what is considered a material supplier's last furnishing date and how the role affects lien deadlines. While it can be easy for a contractor or sub to point to their last date of furnishing on a project, a material supplier's last furnishing date can be a moving target. If there's a large gap in time between when materials are supplied, it can seem like the last furnishing date would be based on one date, when in reality, the date labor or materials were last furnished could change if materials are later ordered or if the use of equipment extends beyond the original expected term. Further, if materials or equipment are continuously provided and to be picked up later, the deadline to file a mechanics lien will be based on the last date those materials or equipment are present on the job and being used in the work - not the date the materials first arrived at the job site. When materials are needed longer than contracted for, and when payments are up to date, it might be wise for a supplier to reach out to the party to whom materials were supplied to extend the agreement for their use. If there have been no other problems on the job, seemingly, such a discussion could be had without much of an issue. If the material or equipment continues to be used on a project, but payment is not made for the continued use - then a claim for payment (such as a Notice of Intent to Lien or a lien filing) may become necessary. But recall that the deadline to do so will run from the last date that materials or equipment were provided. Resolving a dispute without the use of a mechanics lien filing is typically preferable, so the time between last furnishing and the Notice of Intent to Lien deadline can often be used to resolve payment disputes without the need for further action. Finally, the following articles could be helpful when looking at Colorado requirements: (1) What Is a Colorado Notice of Intent to Lien?; and (2) How Long Do I Have To File A Mechanics Lien in Colorado?. Further, when looking at lien and notice deadlines, this tool could be helpful: Payment Rights Advisor.

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