cost plus contract late and incomplete payments, now no payments on billing,how is the lien set up on a cost plus deal, also This bank always bonds around the liens. how do we protect against this
Dec 21, 2017
In order to determine the amount of a lien claim, a claimant should calculate the amount due or owing for work performed and unpaid, as contemplated in the contract. Extras such as interest payments or late fees may not be included. Understandably, determining this amount can be challenging. However, when estimating the lien amount, justifying the amounts with specific descriptions of work performed and supporting amounts included with accompanying invoices and/or contractual provisions will go a long way to validating the amount of the lien claim. Of course, it's important not to exaggerate or overstate the amount of the lien - this will lead to a loss of lien rights and further liability in Colorado. But under § 38-22-128 of the Colorado mechanics lien statute, this provision (for excessive lien amounts) applies to a claimant who included an amount "greater than is due without a reasonable possibility that said amount claimed is due and with the knowledge that said amount claimed is greater than that amount then due..." In regards to the bank bonding off the lien, this is no reason to fret. When a lien is bonded off in Colorado, a claimant must bring an action against the bond to enforce their claim - but the deadline for this action to be brought is the same deadline to foreclose a lien (within 6 months of the date the project was completed, or labor or materials were last furnished to the project).