Home>Levelset Community>Legal Help>Follow up

Follow up

I just want to verify. I am a general contractor who is in a dispute with the owner. the owner never furnished us with any paperwork when the job commenced. This is a bank funded job and I assumed that there should be a notice of dispersers in order for the contractor to be protected, which my understanding has to be filed or provided in case an issue with payment arises and will provide me with direction to file a lawsuit. Am I wrong in my thinking?

1 reply

Mar 13, 2020

Lenders on Colorado construction projects must provide a disbursement notice (which is very similar to a Notice of Commencement) before their first disbursement. When that disbursement notice is filed, all parties working on the job can get the contact information for the disburser in order to send the disburser notice that they're working on the job. And, if a contractor properly sends notice to the disburser, and if the disburser fails to uphold their duties under CRS § 38-22-126(6), then the disburser will become liable to the contractor. With that being said, I'll admit I'm not intimately familiar with that process. So, for more clarity on the rights, responsibilities, and potential claims associated with disbursement notices, it'd be wise to consult a local Colorado construction attorney for additional information. Finally, recall that a contractor will be able to protect themselves from nonpayment in a number of ways, including with lien rights or legal claims, regardless of whether a bank has given a notice regarding disbursements. And, merely leveraging the right to lien - like with a Colordao Notice of Intent to Lien - can force payment. For more information about Colorado mechanics lien rights, these resources should be valuable: (1) Colorado Mechanics Lien Guide and FAQs; (2) How to File A Colorado Mechanics Lien – Step By Step Guide To Get You Paid; and (3) Colorado Notice of Intent FAQs & Guide.

0 people found this helpful

Helpful