The Contractor's Trust Fund Statute

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"The Contractor’s Trust Fund Statute, C.R.S. § 38-22-127, is an extremely powerful remedy available to owners and developers of a construction project, yet it rarely is utilized. The purpose of this article is to illustrate the benefits and nuances of this largely unknown statute.

In an effort to protect against “dishonest or profligate contractors,” the Colorado General Assembly amended the mechanic’s lien statute in 1975 to include the Trust Fund Statute. (It's been around for awhile!) A situation had become all-too-common: unscrupulous contractors diverted funds from a construction project to pay the (often older) liabilities of a different project. The squeaky wheel gets the grease. When those contractors ran out of money, subcontractors and suppliers went unpaid, liens were recorded against the property and developers often were required to provide payment for a second time. The Trust Fund Statute was meant to prohibit and penalize such conduct...."

 ProjectGuard is your solution to meet the requirements of C.R.S. § 38-22-127 which protects both your customers and you with secured project payment, validated draws, and a paper trail that'll help you keep your books straight!

Our goal is to create integrity and transparency!

Contact us for details about how to get your next project secured with ProjectGuard!

check out this article for the source of the quote above: https://crej.com/news/contractors-trust-fund-statute-powerful-remedy-developers/?fbclid=IwY2xjawE_AyJleHRuA2FlbQIxMAABHS00DlSDRL5g95Ljqs7wQEw8t5qAo0BHYSe18XY5NbeixXmqAPlWdb1BeA_aem_8sxZONUTK9oagAoFhR0OLQ