A mechanic’s lien is the commonly used tool by contractors and subcontractors which makes sure that they get paid for the work on private construction projects. A mechanic’s lien cannot be used for a public property. Hence, a bond claim is used for collection of accounts which are for public work projects. Notice and filing of a mechanic’s lien in Texas may differ according to the project.
There are two types of project divisions, commercial or residential. The latter always has additional requirements if the construction is a homestead. All the people working on a construction project in Texas should make a note of these important requirements when you begin your work.
Below, an outline has been given that applies to private work in Texas and will surely help you through the various forms and deadlines which needs to be followed.
It is important that you get to know the people who can file for a mechanic’s lien in Texas. A vast number of people working in different profiles in Texas can file for a mechanic’s lien. Some of these profiles have listed for you:
- Custom Fabricated Materials
- Labor or Labor Materials
- Demolition Services
- Landscape Services
- Design Services – This is only for engineers, surveyors or professional architects who have a written agreement with their owner.
If you are a general contractor in Texas you don’t require a pre-lien notice. However, for others, sending lien notices is required and is a bit complicated in Texas. The notice which you need to send and where you need to send totally depends on the type of project and your relation with it. It is very important that you send your notice at the correct time and on the proper form. Otherwise you might likely forfeit your right to recover through the mechanic’s lien of the project. Some of the Texas mechanic’s lien notices and their forms are discussed below.
Notice of Claim
- First Tier for Subcontractors and Suppliers: These notices are required for subcontractors who have a direct contract with the original contractor (supplier). In this scenario, you will have to give the owner a notice in written by the fifteenth day of the third month which should be followed by regular notices each month in which you have either worked for them or have provided the construction project while delivering the materials. A certified email should be sent and you should always request for the return receipt.
- Second Tier Notices: These are for suppliers without a contract with original contractors. It is almost similar to the above. However the deadline to pay up moves up a month.
- Requirement for Contract for Homestead Properties: To have a valid mechanic’s lien on a homestead in Texas, it is important for a written contract to be there between the original contractor and the homeowner.
- Filing Deadline: On commercial projects clamant must file the lien affidavit with the county clerk.
- Payment: The last step is payment. If you are still not paid, consider reinforcement.