Home>Levelset Community>Legal Help>I have done estimates. I never have advertized "free quotes." On my first estimate i send it says clear as ever. "May be subject to estimate fee if quote not accepted im 7 days." So I send a bill and naturally people don't want to pay. I'm filing intent forms tomorrow. Will it work or not?

I have done estimates. I never have advertized "free quotes." On my first estimate i send it says clear as ever. "May be subject to estimate fee if quote not accepted im 7 days." So I send a bill and naturally people don't want to pay. I'm filing intent forms tomorrow. Will it work or not?

I did above

2 replies

Jan 29, 2018

This question gives rise to a couple of things to consider: 1) whether the estimate and the estimate fee clause is sufficient to obligate payment, and 2) whether filing intent forms will work (or whether it is appropriate).

Regarding point 1, there is not enough information to determine if the estimate contract and specific clause is sufficient to obligate payment. However, from a general high-level view, the clause would likely work better if you charged a specifically defined estimate fee (due in 10 or so days from the date of estimate) that was waived if the quote/estimate/bid was accepted within 7 days. As it stands, there may be too much confusion surrounding what the other party actually agreed to for it to work as you want it to. You may want to have a local attorney draft up a quick new estimate contract to accomplish what you want it to do.

Regarding point 2, if you are referring to sending Notice of Intent to Lien to the property owner pursuant to Colorado lien requirements whether it will work (result in payment) is a different inquiry than whether it will work (protect lien rights). Sending a notice of intent in this type of situation may provide some incentive for the property owner to pay to amount claimed to be due (to avoid the necessity of dealing with a lien or escalating situation whether or not a subsequent lien would be valid), but would likely not result in protection of lien rights.

In Colorado, like most states, parties who are provided lien protection are parties who were "performing labor" or "furnishing labor, laborers, or materials to be used in construction" of a building. There generally needs to be an actual improvement made and a project commenced in order to give rise to mechanics lien rights (some exceptions exist for architects, and parties who created specially fabricated material, among others). Giving an estimate for work, but not actually performing work, generally would not give rise to mechanics lien rights.

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