In Colorado, any person or company that performs work or furnishes materials used in the construction, alteration or improvement of any home, structure or property may be entitled to a mechanic’s lien under C.R.S. §38-22-101. However, Colorado requires strict compliance with the statute to enforce the lien. A Notice of Intent to File Lien Statement before the lien is filed must be served on the property owner; the lien statement must contain specific information as provided by Colorado statutes; and an affidavit of service must be included. Generally, the lien must be recorded within 4-months of the completion of the project or the last date of provision of labor or materials and a civil action must be initiated within 6-months to foreclose on the lien (there are some exceptions to this timeline).
While Colorado has a “spurious” lien statute that allows for a quick procedure and the award of prevailing party attorney’s fees for certain “spurious” documents that cloud the title to property, the statute does not apply to a general mechanic’s lien. The Colorado Court of Appeals has held that a general mechanic’s lien cannot be attacked under the “spurious” lien statute but rather the proper procedure is an action to quiet title.
Of course, if a mechanic’s lien is not available because the time has expired to do so, this doesn’t prevent a lawsuit for breach of contract as long as it’s brought within the timeframe provided by the statute of limitations (generally, 3-years in Colorado with some exceptions). Thereafter, a judgment in the lawsuit may be used to record a lis pendens on the property.
Tuscany, LLC v. Western States Excavating Pipe & Boring, LLC, 128 P.3d 274, 279 (Colo. App. 2005),