C.R.S. Section 38-22-102
Payments

  • effect

(1)

No part of the contract price, by the terms of any such contract, shall be made payable, nor shall the same, or any part thereof, be paid in advance of the commencement of the work, but the contract price, by the terms of the contract, shall be made payable in installments, or upon estimates, at specified times after the commencement of the work, or on the completion of the whole work; but at least the following percentages of the total contract price shall be made payable at least thirty-five days after the final completion of the contract:

(a)

Fifteen percent of the first two hundred fifty thousand dollars of the contract price;

(b)

Ten percent of the contract price in excess of two hundred fifty thousand dollars up to and including five hundred thousand dollars;

(c)

Five percent of the contract price in excess of five hundred thousand dollars up to and including seven hundred fifty thousand dollars;

(d)

Two percent of the contract price in excess of seven hundred fifty thousand dollars.

(2)

No payment made prior to the time when the same is due, under the terms and conditions of the contract, shall be valid for the purpose of defeating, diminishing, or discharging any lien in favor of any person, except the contractor or other person to or for whom the payment is made, but as to such liens, such payment shall be deemed as if not made and shall be applicable to such liens, notwithstanding that the contractor or other person to or for whom it was paid may thereafter abandon his contract, or be or become indebted to the reputed owner in any amount for damages or otherwise or for nonperformance of his contract or otherwise.

(3)

As to all liens, except those of principal contractors, the whole contract price shall be payable in money, and shall not be diminished by any prior or subsequent indebtedness, offset, or counterclaim in favor of the reputed owner and against the principal contractor, and no alteration of such contract shall affect any lien acquired under the provisions of this article. In case such contracts and alterations thereof do not conform substantially to the provisions of this section, the labor done and laborers or materials furnished by all persons other than the principal contractor shall be deemed to have been done and furnished at the personal instance and request of the person who contracted with the principal contractor, they shall have a lien for the value thereof.

(3.5)

Any provisions of this section to the contrary notwithstanding, it shall be an affirmative defense in any action to enforce a lien pursuant to this article that the owner or some person acting on the owner’s behalf has paid an amount sufficient to satisfy the contractual and legal obligations of the owner, including the initial purchase price or contract amount plus any additions or change orders, to the principal contractor or any subcontractor for the purpose of payment to the subcontractors or suppliers of laborers, materials, or services to the job, when:

(a)

The property is an existing single-family dwelling unit;

(b)

The property is a residence constructed by the owner or under a contract entered into by the owner prior to its occupancy as the owner’s primary residence; or

(c)

The property is a single-family, owner-occupied dwelling unit, including a residence constructed and sold for occupancy as a primary residence. This paragraph (c) shall not apply to a developer or builder of multiple residences except for the residence that is occupied as the primary residence of the developer or builder.

(4)

Any of the persons mentioned in section 38-22-101, except a principal contractor, at any time may give to the owner, or reputed owner, or to the superintendent of construction, agent, architect, or to the financing institution or other person disbursing construction funds, a written notice that they have performed labor or furnished laborers or materials to or for a principal contractor, or any person acting by authority of the owner or reputed owner, or that they have agreed to and will do so, stating in general terms the kind of labor, laborers, or materials and the name of the person to or for whom the same was or is to be done, or performed, or both, and the estimated or agreed amount in value, as near as may be, of that already done or furnished, or both, and also of the whole agreed to be done or furnished, or both.

(5)

Such notice may be given by delivering the same to the owner or reputed owner personally, or by leaving it at his residence or place of business with some person in charge; or by delivering it either to his superintendent of construction, agent, architect, or to the financing institution or other person disbursing construction funds, or by leaving it either at their residence or place of business with some person in charge. No such notice shall be invalid or insufficient by reason of any defect of form, provided it is sufficient to inform the owner or reputed owner of the substantial matters provided for in this section, or to put him upon inquiry as to such matters.

(6)

Upon such notice being given, it is the duty of the person who contracted with the principal contractor to withhold from such principal contractor, or from any other person acting under such owner or reputed owner, and to whom, by said notice, the said labor, laborers, or materials, have been furnished or agreed to be furnished, 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 for record under this article, including reasonable costs provided for in this article.

(7)

The payment of any such lien, which has been acknowledged by such principal contractor, or other person acting under such owner or reputed owner in writing to be correct, or which has been established by judicial determination, shall be taken and allowed as an offset against any moneys which may be due from the owner, or reputed owner to such principal contractor, or the person for whom such work and labor was performed or furnished.

Source: Section 38-22-102 — Payments - effect, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-38.­pdf (accessed Oct. 20, 2023).

38‑22‑101
Liens in favor of whom - when filed - definition of person 38‑22‑102
Payments - effect 38‑22‑103
Attaching of lien - enforcement 38‑22‑104
Lien on mining property 38‑22‑105
Property subject to lien - notice 38‑22‑105.5
Notice of lien law 38‑22‑106
Priority of lien - attachments 38‑22‑107
Lien attaches to water rights and franchises 38‑22‑108
Rank of liens 38‑22‑109
Lien statement 38‑22‑110
Action commenced within six months 38‑22‑111
Joinder of parties - consolidation of actions 38‑22‑112
Allegations of complaint 38‑22‑113
Hearing - judgment - summons - defense 38‑22‑114
Disposition of proceeds - execution 38‑22‑115
Parties to action 38‑22‑116
Costs 38‑22‑117
Assignment of lien - failure to support lien 38‑22‑118
Satisfaction of lien - failure to release 38‑22‑119
Agreement to waive - effect 38‑22‑120
Rules of civil procedure apply 38‑22‑121
Liens of surveyors and engineers 38‑22‑122
Lien under two contracts - effect 38‑22‑123
Payment to avoid invalid 38‑22‑124
Other remedies not barred 38‑22‑125
Bona fide purchaser 38‑22‑126
Disburser - notice - duty of owner and disburser 38‑22‑127
Moneys for lien claims made trust funds - disbursements - penalty 38‑22‑128
Excessive amounts claimed 38‑22‑129
Principal contractor may provide bond prior to commencement of work 38‑22‑130
Payment of claims by surety 38‑22‑131
Substitution of bond allowed 38‑22‑132
Lien to be discharged 38‑22‑133
Action to be brought on bond or undertaking
Green check means up to date. Up to date

Current through Fall 2024

§ 38-22-102’s source at colorado​.gov