Monthly Archives: April 2013

April 25, 2013

Failure To Obtain Required Bond Could Bar Claims

By Tim Gordon

Today, in Tarco, Inc. v. Conifer Metropolitan District, 213 COA 60, a division of the Colorado Court of Appeals held that a general contractor’s failure to provide the bond required by C.R.S. § 38-26-106 on a public works project does not necessarily bar the general contractor from brining a claim against the owner for payment.  Still, failing to obtain the requisite bond is risky.

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April 4, 2013

Contractor Cannot Avoid Contractual Limitation To Fee By Filing Lien For “Value” Of Work

By Tim Gordon

In Byerly v. Bank of Colorado, et al., 2013 COA 35, a division of the Colorado Court of Appeals held that the value of a general contractor’s mechanic’s lien is always limited to the contract price, even where the owner has not filed the contract with the clerk and recorder’s office.  Thus, the language in C.R.S. § 38-22-101(3) providing that “such persons shall have a lien for the value thereof” when the contract is not filed applies only to subcontractors and material suppliers.  As such, the general contractor’s mecanics’ lien recorded for the “value” of the general contractor’s work instead of the amount allowed under its contract was excessive.

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