Colorado Mechanic Lien Enforcement Deadlines

Private Works — Suit After Performance But Within 6 Months of Completion (C.R.S. §3249)

Under Colorado law, suit to enforce a mechanics' mechanic lien may be filed at any time after performance but must be filed no more than 6 months after completion of the project. C.R.S. §3249.

If the mechanic lien claimant fails to initiate suit within this 6-month period after completion, the mechanic lien expires and becomes unenforceable. It is critical to monitor the project completion date to ensure timely filing.

Public Works — Payment Bond Suit Deadline (§38-26-105)

On covered public works projects — a bond is required under C.R.S. §38-26-106 for local-government contracts over $50,000 and state contracts over $150,000 — an action on the payment bond must be commenced within 6 months after completion of the work. C.R.S. §38-26-105. This bond limitation runs separately from the 90-day claim against unexpended funds described below.

If the payment bond itself provides for a longer period to file suit, the bond's terms control over the statutory deadline. Claimants should carefully review the bond language for any extended filing periods.

Public Works — Claim Against Unexpended Funds (§38-26-107)

For claims against unexpended funds on public projects, the claimant must file a Verified Statement of Amount Due/Mechanic Lien on Funds with the owner or public authority at any time up to final settlement of the project.

Suit must be filed within 90 days after the date of final settlement. A Lis Pendens is required to be served on the government entity when filing suit.

• File Verified Statement of Amount Due with public authority before final settlement
• File suit within 90 days after final settlement
• Lis Pendens must be served on the government entity

No Preliminary Notice Required for Public Works Suits

Colorado does not require any preliminary notice from contractors, subcontractors, materialmen, or laborers before filing suit on a public works payment bond or pursuing a claim against unexpended funds.

However, for unexpended funds claims, the Verified Statement of Amount Due must be filed before final settlement to preserve the claim.

Automatic Mechanic Lien Expiration

A Colorado mechanics' mechanic lien that is not enforced by filing suit within 6 months after completion of the project automatically expires. The claimant loses all mechanic lien rights and must pursue other remedies such as breach of contract or trust fund claims.

The trust fund remedy may provide an alternative path to recovery even after mechanic lien expiration, as all funds disbursed to any contractor or subcontractor are impressed with a trust under Colorado law.