Page 57 - CCD Magazine - Winter-Spring 2019 Issue

liens accordingly. In situations where the contractor runs into financial difficulty or has woefully underbid the job, the project owner often times will receive mechanics’ lien claims far above the original contract price. Colorado law provides for some degree of protection to a project owner who records the construction contract in the county where the work is being performed. C.R.S. §38- 22-101(3) provides that a project owner may, prior to the commencement of the work, record the required project information with the county recorder’s office. If this is done, the contract price will act as a ceiling on any mechanics’ lien claims. BLANKET LIEN V. APPORTIONED LIEN Situations arise where a lien claimant has provided labor and/or materials to an owner on separate works of improvement within a specific county, or on several structures within a single commercial project. Under these circumstances, Colorado law permits the lien claimant to apportion the labor and materials supplied to each project, but also recognizes that it is often times difficult. When the labor and/or materials cannot be “readily and definitely divided and apportioned among the several buildings, structures, or other improvements” one lien claim can be made against all of the improvements for the value of the labor and/or materials provided. This is commonly referred to as a “blanket” lien. Where a lien claimant has chosen in good faith to file a blanket lien, the failure on their part to show that the claim could not be apportioned is not fatal to the claim but merely goes to the availability of relief. Thus, as long as there is support for the lien, the court may equitably apportion the debt in its foreclosure decree. CONCLUSION While Colorado’s mechanics’ lien statutes apply to all manner of private construction projects, there are provisions that are unique to residential construction and others that are unique to commercial construction. Compliance with the above statutes can yield significant benefits to borrowers and consequently to their mortgage lenders. Colorado Construction & Design | 57