Colorado Preliminary Notice Rules
At a Glance
- Private Jobs
- Public Jobs
- Top Links
Preliminary Notices Not Required But...
Colorado does not require notice prior to performing work, but allows parties other than the GC to file a notice to gain additional protection. Further, all construction participants are required to provide a notice of intent to lien as well as a copy of the statement of lien that will be filed at least 10 full days prior to the filing of a mechanics lien.
GCs Must Send Only Notice of Intent
Notice of Intent to Lien (with a copy of lien that will be filed) required 10 days before filing.
Subcontractors Must Send Only Notice of Intent
Notice of Intent to Lien (with a copy of lien that will be filed) is required 10 days before filing. However, Colorado specifically allows a subcontractor to file a notice to owner in order to require the owner to withhold funds to ensure payment of the notifying party.
Suppliers Must Send Only Notice of Intent
Notice of Intent to Lien (with a copy of lien that will be filed) is required 10 days before filing. However, Colorado specifically allows a supplier to file a notice to owner in order to require the owner to withhold funds to ensure payment of the notifying party.
You Cannot Send Notice Late
Failure to provide the notice of intent to lien at least 10 full days prior to the filing of the lien is fatal to a subsequent lien claim. This requires strict timing, since the delivery of the notice of intent doesn't extend the time in which a lien may be filed.
The notice to owner is not required, however, so there is no penalty for sending it late.
Send to Owner and Contractor
The notice to owner should be given to the owner. The notice of intent to lien must be served on the owner, or reputed owner or owner’s agent, and the prime contractor or his agent.
Preliminary Notice Not Required
Colorado does not require preliminary notices be sent to preserve the right to make a claim against a payment bond on a public project.
No Notice Required from GCs
On public jobs, any claims for non-payment are made against the general contractor's bond. Since GCs will not make a claim against their own bond for non-payment, they do not have bond claim rights, and have no preliminary notice requirement.
No Notice Required from Subs
Colorado does not require preliminary notices be sent to preserve the right to make a claim against a payment bond on a public project.
No Notice Requirement from Suppliers
Colorado does not require preliminary notices be sent to preserve the right to make a claim against a payment bond on a public project.
Colorado does not require that a preliminary notice be provided prior to, or shortly after beginning to perform work or furnish materials on a project. However, Colorado does contemplate the sending of a best-practice preliminary notice that provides real effects on payment rights, and mandates that a notice of intent to lien be provided to the property owner in the event payment disputes escalate to the point that a lien is required.
In Colorado, any party other than the prime contractor is allowed to file a Notice to Owner. This notice, while not required, has powerful effects. Once the notice has been provided, “it is the duty of the [property owner] to withhold from such principal contractor . . . sufficient money due or that may become due to said principal contractor, or other persons, to satisfy such claim and any lien that may be filed therefor.” This means that if a sub-tier participant gives a preliminary notice prior to furnishing labor or materials to a Colorado project, the owner is obligated to withhold the amount referenced in the sub-tier participants notice to satisfy any claim that party may have for payment.
Additionally, any project participant may give a Disburser Notice pursuant to CO Rev Stat § 38-22-126 to, in effect, skip up the payment chain. If the disburser notice is provided appropriately, the disburser of funds is required to pay the claimant directly, or, if it doesn’t is directly liable for any damages suffered by the noticing party. For example, if a GC does not pay a subcontractor that has provided a proper notice to the disburser (generally the construction lender or owner), the disburser is required to pay the subcontractor directly from the construction loan or other funds, or will be directly liable if the sub remains unpaid.
Finally, in the event that a payment dispute exists to the extent that it appears a mechanics lien will need to be filed. Any such potential lien claimant is required to give the property owner, reputed owner, or owner’s agent, a Notice of Intent to Lien as well as a copy of the Statement of Lien that will be filed at least 10 full days prior to the filing of the mechanics lien itself.
