Subcontractor Not Paid by the General Contractor in Colorado? Your Options Beyond a Lien

If a GC won’t pay you on a Colorado job, you have more options than a mechanic’s lien: a trust fund claim if the GC was paid for your work, a bond claim on public jobs, and a breach of contract suit. Start by writing down your last day of work, because most lien deadlines run from that date.

You finished your scope. The general contractor billed the owner, and maybe even got paid, but your pay application is still sitting there. Then come the excuses: “we’re waiting on the owner,” “there are backcharges,” “our contract is pay-if-paid.” For a Colorado subcontractor, that isn’t just a cash-flow headache. It’s payroll, materials, and your next job on the line.

Most advice stops at “file a mechanic’s lien.” A lien can be a strong tool, but it isn’t the only one, and it runs on tight deadlines. This guide walks through the main options a Colorado sub has when the GC doesn’t pay, in plain English, and explains when funding may help keep a strong claim moving.

Owed $10,000 or more and legal costs are the holdup? Request a free claim review. Not legal advice.

First, figure out where the money is stuck

Before picking a tool, pin down why you haven’t been paid. The answer usually points to the right path:

• The owner hasn’t paid the GC. Your lien rights against the property and your contract claim against the GC both matter here.
• The owner paid the GC, and the GC didn’t pass it down. This is where Colorado’s construction trust fund statute can come into play.
• The GC disputes your work. Backcharges, unsigned change orders, and punch-list fights make documents and dates critical.
• The GC is in financial trouble. Speed matters, and so does knowing who else may be responsible for the money.

You may not know which one applies yet. That’s fine. Write down what you do know, and keep going.

Option 1: A mechanic’s lien, and its deadlines

Colorado gives subcontractors and suppliers who furnish labor or materials to improve real property a lien on that property (C.R.S. 38-22-101). The key steps come from the statute:

• Notice of intent. You serve a notice of intent on the owner (or reputed owner) and the prime contractor at least 10 days before you record the lien statement (C.R.S. 38-22-109(3)).
• Lien statement. For most claimants, it must be recorded within four months after the last day you furnished labor or materials (C.R.S. 38-22-109(5)). The statute has shorter and special windows for some claimants.
• Enforcement. A lien generally stops holding the property unless a lawsuit is filed and notice of it is recorded within six months after the last work or completion (C.R.S. 38-22-110).

Those are simplified. Our Colorado Notice of Intent Deadlines and Mechanic Lien Foreclosure Timeline posts go deeper, and the Colorado Mechanic Lien Guide 2026 covers the full process.

One catch for subs on residential work: on certain single-family homes, Colorado gives the owner an affirmative defense to a lien if the owner already paid the full contract amount to the GC (C.R.S. 38-22-102(3.5)). If that defense applies, the lien may not get you paid, and your real claim is against the GC. That’s a big reason to look beyond the lien.

Option 2: Colorado’s construction trust fund statute

Colorado treats money paid to a contractor or subcontractor on a construction project as trust funds for the subs, laborers, and suppliers who did the work (C.R.S. 38-22-127(1)). If the GC was paid for your work and spent that money elsewhere, the statute says that conduct is theft as defined in C.R.S. 18-4-401 (C.R.S. 38-22-127(5)).

Why that matters: Colorado’s civil theft statute lets the owner of stolen property recover three times actual damages (or $200, whichever is greater), plus costs and reasonable attorney fees (C.R.S. 18-4-405). Those remedies aren’t automatic. The elements of theft still have to be proven. The Colorado Supreme Court has also held that you don’t need a perfected lien to claim trust funds (In re Regan, 2007).

There are exceptions, including a good-faith dispute or setoff and cases where the contractor furnished a bond. We break it all down in Colorado Construction Trust Fund Statute (C.R.S. 38-22-127).

Option 3: On a public job, look at the bond

Mechanic’s liens generally can’t be recorded against public property. Instead, on Colorado public works contracts, the contractor generally must furnish a bond that covers payment for labor and materials. That requirement applies to public works contracts over $50,000 for a county, city, school district, or other political subdivision, and over $150,000 for the state (C.R.S. 38-26-106(3)). An unpaid sub or supplier may file a verified statement of claim with the public entity up to the time of final settlement, which requires the entity to withhold funds from the contractor (C.R.S. 38-26-107).

Those procedures have their own short windows. The public entity holds back the funds for only 90 days after the published final-settlement date unless a lawsuit is filed and a lis pendens notice is filed with the entity within that time. A suit on the bond generally must also be brought within those 90 days (C.R.S. 38-26-107(2)–(3)). If your job is public, talk to counsel early, before final settlement.

Option 4: Sue the GC on the subcontract

Colorado’s lien law doesn’t take away your other remedies (C.R.S. 38-22-124). You can pursue a breach of contract claim against the GC whether or not you have a lien. Before you do, read your subcontract closely for:

• Pay-if-paid or pay-when-paid language. Whether it blocks your claim depends on the exact wording and Colorado case law. Ask a Colorado construction attorney.
• Notice and dispute steps. Some subcontracts require written notice of claims within set periods.
• Arbitration, venue, and attorney-fee clauses. These change where and how you fight, and who may end up covering legal fees.

If you’re owed more than $7,500, Colorado small claims court won’t cover the full amount. See Owed More Than $7,500? Colorado Small Claims Limit and Options for Bigger Contractor Claims.

Promises don’t pause the clock

“We’ll get you next draw” is not a legal pause button. Lien deadlines run from your last day of work, not from the GC’s latest promise. Save every text and email, date your notes, and get deadlines on a calendar with counsel’s help.

What to gather before you call anyone

• Your subcontract, change orders, and any written scope changes
• Pay applications and the GC’s responses (approved, rejected, or ignored)
• Anything showing the owner paid the GC: draw records, joint checks, lien waivers
• Your last day of work (best estimate, labeled as such)
• Any notices you’ve already sent: notice of intent, lien statement, bond claim, demand letters
• Written payment excuses: “waiting on the owner,” pay-if-paid, backcharges

Do not post project or owner details in public forums.

When funding makes sense

Plenty of subs have a solid claim but can’t front the cost of chasing a GC: the retainer, filing costs, and months of attorney time. That’s the gap Darkwell fills. Our main business is funding contractor claims. Darkwell may fund your attorney’s fees and costs to pursue the balance, so your attorney can run the case.

Darkwell provides litigation funding. In select cases, and where state law allows, Darkwell may purchase a claim for cash. We review claims of $10,000 or more, subject to review and approval by our team. Darkwell works in select states where our model is allowed, including Colorado, Wyoming, Florida, and California. Darkwell does not buy or collect consumer debt in states that require a collection license, including Colorado.

Funding doesn’t fix a weak claim, and it can’t revive a deadline that has already passed.

Related reading: Claim funding when you can’t afford an attorney, Litigation funding vs hiring a lien attorney, Mechanic Lien Attorney Alternative, and Contractor Not Getting Paid. If the party that stopped paying is a flip LLC, see Can You Put a Lien on an LLC’s Property? If a factoring company turned you down because the GC disputes your invoice, see Factoring Won’t Take Your Disputed Invoice?

What to do next

1. Write down your last day of work and get your lien dates calendared with counsel.
2. Pull together the documents listed above.
3. Talk to a Colorado construction attorney about your lien, trust fund, bond, and contract options.
4. If cost is what’s stopping you and the claim is $10,000 or more, request a claim review.

Free claim review (not legal advice)

Subcontractor in Colorado with an unpaid balance from a general contractor? Submit a free claim review at Darkwell Capital or email team@darkwellcapital.com. Send what you have, and you’ll get a response from our team.