The MSLBMDA fought hard against a developer-backed bill was brought forward in Colorado that if passed would have made Colorado a pre-lien state requiring a 20-day look back – one of the shortest for states requiring preliminary notices. The bill as it was initially drafted did not contain a requirement for the Owner or Principal Contractor to record a notice with their "notice" information in the public records or to post such a "notice" at the job site so that the subcontractors and suppliers know to whom the preliminary notice was to be sent. It did however require notice to one of the following in order to comply: "owner, or reputed owner, or to the superintendent of construction, agent, architect, or to the financing institution or other person disbursing construction funds." Most subcontractors and suppliers do not have this information.
Armed with comments from several of our MSLBMDA members, MSLBMDA Executive VP Geri Adams had the opportunity along with lien attorney Jean Arnold to testify in front of the House Committee on Economic and Business Development. Thankfully that bill was killed in committee in 2011.
The MSLBMDA represented our members and fought hard to maintain lien rights on your behalf. MSLBMDA Executive Vice President Geri Adams and lien attorney Jean Arnold, along with representatives from other industry groups – Home Builders Association, Associated General Contractors, Aggregate groups, Title Company interests, etc. - met to take another hard look at preliminary notice changes being proposed by the developer/contractor groups and try and come up with some compromise language that would not jeopardize your current lien rights. Initially the bill would have required a 10-day pre-lien notice being filed for you to maintain your rights down the road which would essentially have put our members in the position of filing a pre-lien notice on every job! It also contained language that would have required pre-lien compliance on projects where the lien claimant supplied materials with a $5,000 minimum threshold. Needless to say, either scenario would have resulted in monumental paperwork for our dealers in order to maintain the right to lien.
We fought hard for a look back of 60-90 days rather than 10 and an increase in the minimum threshold amounts to $20,000 on residential projects and a much higher amount on commercial projects.
This issue may come again, but for now your lien law remains intact!