A typical notice of non-liability may read: “You are hereby notified that the undersigned owner (person’s name) is the owner of the following described real property located in the County of… State of Colorado, legally described as: (legal description). You are further notified that the undersigned owner and the above-described property will not be responsible for any labor, services, materials, tools, equipment, supplies or other otherwise lienable items used in the construction, alteration, addition to, removal or repair of the above-described property, or any part thereof and the said real property shall not be subject to any mechanic’s lien of any person or entity whatever.”

The notice must be posted in a conspicuous place on the property within that five days and remain continuously while construction work is in progress.  Alternatively, such notice may be served by personal delivery upon whoever is performing work or supplying materials or other services for the construction.

The distinction between the two types of mechanic’s liens is critical for several reasons.  Contractors, subcontractors, suppliers and others working on projects for tenants or other non-owners that are timely posted with notice of non-liability must be aware that they cannot rely upon mechanic’s lien remedies for payment.

On the flip side, owners who do not contract for construction and construction-related services on their properties need be diligent in discovering that construction work is being done on their property so that they can give timely notices of non-liability if they wish. Otherwise, their properties may be subjected to mechanic’s liens that they may have to pay to preserve their property interests.

Colorado mechanic’s lien laws may either be swords or shields, depending upon the taking of timely actions by those who rely upon them for payment or those who need to protect their properties against potentially costly remedies.

Albert B. Wolf is a principal in the Denver law firm of Wolf Slatkin & Madison PC. This column was written with the intent of providing general legal information intended to be reasonably accurate although not comprehensive.  Readers are therefore urged to consult their attorneys for any specific legal advice they may desire concerning the subject matter of this column.