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Home>Levelset Community>Legal Help>I'm in Colorado. I signed a contingency agreement with my Customer to do all trades on the Insurance Scope. I performed the Roof which she paid but now that's she's seen what I'm entitled to for overhead and profit she wants to cancel my services. Can I file a lien?

I'm in Colorado. I signed a contingency agreement with my Customer to do all trades on the Insurance Scope. I performed the Roof which she paid but now that's she's seen what I'm entitled to for overhead and profit she wants to cancel my services. Can I file a lien?

ColoradoRight to Lien

My customer wants to fire me so she can keep the overhead and profit. I also adjusted the claim and increased the dollar amount by 5k. Can I lien?

1 reply

Nov 21, 2018
I'm sorry to hear about that. Explaining when mechanics lien rights are most appropriate may help here. Generally, mechanics liens provide protection for those who perform construction work and go unpaid for that work. Thus, they're most appropriate to recover for work that's already been performed. When work has been contracted but not yet performed, and the agreement is terminated - there may be a way to recover damages for the termination of the agreement. Likely, however, a mechanics lien will not be the most appropriate remedy. Further, increasing a lien amount beyond what is currently owed could be fatal to a lien claim - even where the original claim may be valid. In fact, that could potentially result in a fraudulent lien and open a lien claimant up to liability (and potentially even criminal liability). In a situation where a contract is being unfairly terminated, it may be more appropriate to utilize a demand letter threatening legal action (such as breach of contract, potentially) - and sending such a letter through an attorney can be extra effective. Alternatively, the mere threat of lien - via a Notice of Intent to Lien - can be really effective, regardless of whether a lien claim will actually be filed. Sending a Notice of Intent to Lien to both the property owner and the nonpaying customer will often put pressure on the nonpaying party to resolve the dispute - and considering the drastic nature of mechanics liens, the threat of lien will often bring other parties to the bargaining table. Further, consulting with a local attorney could also be helpful - they'll be able to review the contract and circumstances and advise on how best to proceed. For more on Colorado mechanics lien rights, this resource may be helpful: Colorado Mechanics Lien & Notice FAQs.
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