Starting August 12, 2026, Colorado’s mechanics’ lien statute underwent its most significant update in years. Colorado’s General Assembly enacted Senate Bill 26-074 on April 6, 2026, and the new law directly addressed a problem that has plagued contractors and subcontractors for decades. For years, a contractor and subcontractor who filed a lien for the full amount it believed was due — particularly when that amount included disputed costs, delay damages, or lost productivity — risked triggering the “excessive lien” penalty. That penalty could force the claimant to forfeit its lien rights entirely and pay the other side’s attorney fees. The new law expands the categories of costs to be claimed by good-faith lien claimants, while still protecting against truly abusive filings. General contractors, subcontractors, suppliers, owners, and lenders all need to understand these changes.

What the Bill Changed
1. Lien Value May Include Disputed Amounts
The bill amends the core lien statute to insert the phrase “whether disputed or undisputed” into the description of lienable value. Prior law referenced only “the value” of labor, services, or materials furnished. The new text confirms that a lien can attach for amounts the parties still dispute. A claimant no longer needs the owner or general contractor to agree on the amount before filing.