A Colorado mechanic’s lien form provides contract workers and suppliers the ability to demand compensation for unpaid materials or services contributed toward the improvement of real property. A mechanic’s lien asserts that the unpaid party, known as the “claimant,” hasn’t received payment for their work and that compensation is demanded from the property owner. The property owner pays the lien, regardless of whether the contract in question was with them or the general contractor.

Placing a mechanic’s lien on a property makes it difficult, and sometimes impossible, for individuals to refinance or sell their homes. Consequently, owners will be motivated to clear the lien by paying the claimant the amount owed.