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Does warranty items justify as materials being delivered,

ColoradoLien DeadlinesRecovery OptionsRight to Lien

I understand that you have to submit a lien within 4 months, we are past the 4 months, but our customer was given some warranty product in December and February. Does this justify as materials being delivered,

1 reply

Apr 1, 2019
I'm sorry to hear that you've had payment trouble here - no one should have to scratch and claw to get paid what they've already earned. Unfortunately, punch list or remedial work generally won't extend the deadline to file a mechanics lien in Colorado. This is true in most states, and it's discussed in further detail in the following post: I Returned to a Job – Does that Change the Lien Deadlines? There may be an argument that warranty work is done pursuant to a contractual warranty (and therefore the contract), and the deadline to file Colorado lien should be based on any work done under the contract - but the effectiveness of such an argument would be questionable. Of course, that doesn't mean that an amount that's owed and unpaid isn't recoverable - there are ways to recover payment outside of a mechanics lien. For one, sending a Notice of Intent to Lien could compel payment - regardless of whether a mechanics lien will ultimately be filed. This is especially true in Colorado where a Notice of Intent to Lien is generally a sign that a mechanics lien is about to be filed (since Colorado is one of a few states that actually requires the notice must be sent prior to filing a lien. Because a mechanics lien is such a powerful remedy, warning or threatening a customer and the property owner that a lien claim is coming unless payment is made could be really effective. By informing an owner that a claim will be made, that can help to put additional pressure on a customer to resolve the issue. zlien discusses that idea here: What is a Notice of Intent to Lien? Beyond leveraging or using lien rights, a claimant might also be able to recover based on a demand letter sent to the owner and the customer. By threating specific legal action (such as breach of contract, unjust enrichment, or some other claim), a claimant can show that they refuse to be left unpaid. When sent via an attorney, a demand letter will carry a little extra "umph". Further, a claimant could also pursue sending a debt to collections, collecting via small claims court, or even taking to litigation to recover payment.

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