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Mechanics lien

ColoradoMechanics Lien

I have not been paid for over a month. I have sent intent to lien. GC mentioned to me that if i file a mechanics lien it will take longer for me to be paid because job is thru bank loan and bank will have to investigate before i get paid. True?

2 replies

Aug 31, 2022

Recording a lien or issuing a disburser's notice will certainly grab the bank's attention, which is generally the idea behind your lien rights in the first place. They are designed to secure your payment, whether from the pocket of money paying on the job or the property itself. It's hard to say whether it will add more time before you get paid, because it's on the bank, but your GC may just be trying to push paying you by claiming that. He may also be correct. There are a lot of unknowns with this question. You may want to consult with an attorney to explain in more detail. 

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Aug 31, 2022

It sounds like they are just trying to have you not file the lien. Not filing a lien that complies with the law (and there are lots of issues that contractors miss if they DIY lien filings) as soon as possible and well within the time required is always a mistake. If there is funding on this project the loan covenants normally require them to clear the lien or bond around the lien. 

There are also other strategies to consider beyond merely filing the lien given the funding. Talk to an experienced attorney to discuss these other strategies. 

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