Legal Question in Credit and Debt Law in Colorado

Liens on Construction Materials

I have recently done some remodeling on my basement. The contractor that did the work has been paid in full and has signed a release of liability form. However, I believe that this person is in serious financial trouble. If this person defaults on credit accounts that were used to purchase construction materials, what is my degree of liability for those accounts and how is that liability established? This person has been working on several projects at the same time. How does the court establish that the materials in question were actually used on my property?


Asked on 3/31/02, 6:57 pm

1 Answer from Attorneys
Roger Johnson Roger D. Johnson, P.C.

Re: Liens on Construction Materials

Under the circumstances you describe, CRS 38-22-102[3.5] should operate to immunize your property from the lien claims of the contractor and his subcontractors and materials suppliers. Your payment should operate to discharge your liabilities under the contract.

Your question regarding how a court determines if specific materials are incorporated into the construction on a specific site should be irrelevant in your case; however, in cases where the issue is relevant, the determination is made from the evidence admitted at trial. For example, suppliers who sell merchandise to contractors on account will invariably require the purchaser to designate the address of the job site on their invoice forms prepared at the time of sale. That is probably the most common way a supplier determines the destination of materials sold.

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Answered on 4/01/02, 2:09 pm


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