When there’s almost $2.5 million on the line during a construction project, it would be ideal to never worry about getting paid that large chunk of cash. But unfortunately, such as in Dallas this June, construction contractors are facing these unpleasant business situations where hiring companies are simply not paying them for their labor based off a construction contract. Let’s dig into the five largest liens filed in Dallas County, TX in June of 2019.
The best thing to do in this situation when you haven’t been paid money for construction labor is to file a mechanics lien.This month’s breakdown of a $2 million lien and several high six-figure liens filed in Dallas County, TX. While May’s lien filings will filled with hospitality industry cases, June’s data shows us that when you do business with big, large-scale projects, there’s always a chance you’ll get burned financially. These construction companies listed below understand Texas mechanic lien law and made the smart business decision to file a lien. The five largest liens filed in Dallas County in june 2019 amounted to millions owed to contractors.
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Largest liens filed in Dallas County in June 2019
Anchor Construction, LLC Hired by Argos Ready Mix Corp.
Lien Amount: $2,418,331.51
Claimant: Anchor Construction, LLC
Hiring Party: Argos Ready Mix Corp. n/k/a Argos USA LLC
Property Address of Lien: 2895 West Commerce Street, Dallas, TX
Property Owner: Argos Ready Mix Corp n/k/a Argos USA LLC
Anchor Construction, LLC filed a massive $2,418,331.51 lien on 2895 West Commerce Street, Dallas, TX, a property owned by Argos Ready Mix Corporation, also known as Argos USA, LLC, after also being hired by Argos Ready Mix Corp. Anchor Construction, LLC is a construction company that specializes in client specific designs, project management, and construction management. The company is based out of Fort Worth, TX and Granger, IN. Anchor Construction was the first company to design and build a LEED certified ready-mix plant, which is located at the Argos Ready Mix job site just outside downtown Dallas. Argos Ready Mix Corp. sought Anchor Construction to build a state-of-the-art ready mix facility on the 10-acre site that also includes a 25-foot elevation change. For this specific project, Anchor Construction was contracted out by Argos Ready Mix Corp. for design, engineering, and construction management services. This lien case shows just how much money can be at stake in construction contracts. Big money is at stake with large projects, and big payment risks such as this case are always a possibility.
E-MC Electrical, LLC Hired by The Dennis Engineering Group, LLC
Lien Amount: $899,385.78
Claimant: E-MC Electrical, LLC
Hiring Party: The Dennis Engineering Group, LLC
Property Address of Lien: 701 North Wildwood Drive, Irving, TX, 75061
Property Owner: Frito-Lay, Inc.
Coming in at number two on the list of largest liens from June of this year was from E-MC Electrical, LLC after they filed a lien for just under a million dollars at $899,385.78 against The Dennis Engineering Group, LLC at 701 North Wildwood Drive, Irving, TX, a property owned by the famous chip company, Frito-Lay, Inc., which is actually a company headquarters facility. This plant is operated 24/7 and is the largest plant in Texas in terms of pounds produced. The building itself has 300,000 square feet of manufacturing and warehouse space. E-MC Electrical is merit shop, full-service electrical contractor based out of Kennedale, TX. The company specializes in traditional electrical contracting. E-MC Electrical generally works with service, food, and beverage facilities – thus their involvement at the property owned by Frito-Lay. The company builds automation systems, lighting technologies, energy sector service, datacom, and fire protection. In this case, E-MC Electrical provided demolition and installation of electrical systems at Frito-Lay, Inc.
THB Construction, LLC Hired by The Homestead at Daniel Farms, LP
Lien Amount: $782,598.35
Claimant: THB Construction, LLC
Hiring Party: The Homestead at Daniel Farms, LP/Independent American DeNovo, LLC
Property Address of Lien: 1130 Westmoreland Rd, DeSoto, TX
Property Owner: The Homestead at Daniel Farms, LP
Rolling in at number 3 and technically 3.5 on the list is THB Construction, which filed a lien of $782,598.35 on The Homestead at Daniel Farms, LP after being hired by them, too. Why are two liens that seem the same considered two different liens? It’s clear something fishy is going on. For this lien, two cases were filed, both from the same claimant and against the same hiring property. Yet, the property description was different and each had different exhibits. For example, Exhibit B on the second round of filing for this lien dealt with tree clearing matters that weren’t paid for. This is an interesting lien case, and a great reminder that even lawyers get the filing wrong. THB Construction is based out of Carrollton, TX and is a general contractor that provides roofing construction, accessibility construction, residential construction, and bathroom remodeling.
Morley-Moss, Inc Hired by Austin Commercial, LP
Lien Amount: $747,751.92
Claimant: Morley-Moss, Inc
Hiring Party: Austin Commercial, LP
Property Address of Lien: 400 West Las Colinas Blvd, Irving, TX
Property Owner: Provident Group-Irving Properties LLC
The fourth largest lien in Dallas County took place at 400 West Las Colinas Blvd, Irving, TX, a property owned by Provident Group-Irving Properties, LLC. Morley-Moss, Inc filed a lien of $747,751.92 for their work done at the Irving Convention Center Hotel after being subcontracted by Austin Commercial, LP. Morley-Moss is a diversified electrical contracting firm based out of Sunnyvale, TX. The company has been in business since 1984, and should surely have proper payment procedures in place when liens are required after jobs are completed. Morley-Moss’ main services include IT structured cabling, audio/visual installations, engineering, and design-build services. Per court affidavits, Morley-Moss provided Austin Commercial, LP with electrical services. It appears Morley-Moss hasn’t been paid since at least February of 2019, so we’re hoping their lien works out in a timely manner so they can finally receive the money they’re owed.
W/B General Contractors, LLC Hired Fox Restaurant Concepts
Lien Amount: $349,181.64
Claimant: W/B General Contractors, LLC
Hiring Party: Fox Restaurant Concepts
Property Address of Lien: 2301 N. Akard, Suite 280, Dallas, TX
Property Owner: North The Union LLC, c/o Fox Restaurant Concepts
The fifth and final largest lien for Dallas County in June comes from W/B General Contractors, LLC, as they filed a lien for $349,181.64 against Hired Fox Restaurant Concepts. The work in which W/B General Contractors provided occured at 2301 N. Akard, Suite 280, Dallas, TX, and the property is owned by North The Union LLC, co-owned by Fox Restaurant Concepts. W/B (standing for Wilson/Barnes) General Contractors is a construction firm based out of Dallas, TX that has been in business for 30 years. The company specializes in value engineering, pre-construction phase management, designing, and building. This lien case deals with labor W/B General Contractors provided was for a project at North Italia Restaurant, located in downtown Dallas. Payment has been requested since May, so at least W/B General Contractors hasn’t been waiting too long to get paid. W/B furnished and installed materials for improvements on the North Italia Restaurant consisting of finish out interior construction.
The five largest liens for Dallas County, TX in June 2019 total over $5M, compared to $2M in May 2019
What a difference a month can make, right Dallas County? Last month the county only saw high six-figure liens being filed, and this month a whopping $2.5M takes up about half of the entire top five liens combined. In total, the top five liens filed for Dallas County, TX in June was $5,197,249.20. That’s quite a lot, especially when you consider the largest lien filed in the entire county back in May was only $485,483.32. Meanwhile, Los Angeles, CA has a top-five largest liens tallying up to over $37M also from May of 2019. But what could have driven this rather drastic turn in lien totals from May to June for Dallas? Well, one thing to note is that we’re not seeing that many hospitality industry businesses being tied to lien cases. Back in May, three of the top five lines filed in Dallas County were associated with major hospitality businesses such as Marriott and Sheraton Hotel. While May’s data showed how much risk is involved in doing construction business in the hospitality industry, June’s data shows that working on such large-scale job sites is a great risk.
The 10-acre ready mix facility owned and operated by Argos Ready Mix Corp. fits that description. Contractors have to enter these massive jobs with some precaution, as when you work on projects like this, there’s always going to be a risk you don’t get paid. This month’s lien data again showed us that with E-MC Electrical’s lien filed on their Frito-Lay headquarters jobsite outside Dallas. When you take on major construction projects, a lot of capital is required to get the job done and a lot of payment exchange that can get held up at different parts of the paychain. Here is the total mechanics lien rundown: 194 liens were filed by 151 different businesses for the amount of $11,524,740.80 in the month of June alone. While the biggest lien was north of $2M, the smallest lien claim was made for only $246.81. If that doesn’t showcase the breadth of payment issues in construction, we don’t know what will. Regardless of how big or small your project is, payment risk will always be a factor. From $200 to $2M, and all the way to the tens of millions like in L.A., mechanics liens are being leveraged constantly. If you find yourself experiencing cash flow issues or need to file a lien to get paid, reach out to a Payment Expert today.