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3 of the 5 Liens in Dallas County are dealing with the hospitality industry.

Have you ever considered what you would do if the $485k you were owed for your labor on a construction contract never wound up in your bank account after paying your workforce, hiring additional contractors, paying for all the materials, and were finishing the project?

You could make some rash decisions if you were in this type of predicament. Or, you could make a wise choice when you are not getting paid on a construction job and file mechanics lien in Dallas. This month’s five biggest liens range from nearly half-million-dollars all the way down to a lien claim for $30 in Dallas County, TX. Northern Dallas is outpacing the rest of the entire United States with hotel development, and the lien data from May of this year proves that no type of work is safe from payment problems. Let’s take a look at the biggest liens filed in Dallas County, TX of May 2019.


Richardson Mechanical Hired by Frank Dale Construction

  • Lien Amount: $485,483.32
  • Claimant: Richardson Mechanical
  • Hiring Party:  Frank Dale Construction
  • Property Address of Lien: 2301 W. Campbell Rd, Garland, TX
  • Property Owner: CM Partners LP 

Richardson Mechanical filed a lien of $485,483.32 on 2301 W. Campbell Rd in Garland, TX, a property owned by CM Partners after being hired by Frank Dale Construction. Richardson Mechanical Inc. is a mechanical contractor based out of Richardson, TX. The company specializes in the installation of commercial heating, air conditioning, and refrigeration HVAC tools for contractors in the Dallas area working throughout Northern Texas. Richardson Mechanical’s services are residential, commercial, and mechanical contracting. The company has been in business since 1981, and should surely have some viable payment process system to protect them in cases such as these when filing a mechanic’s lien. Richardson Mechanical furnished HVAC and associated work at Care Meridian Skilled Nursing Facility in accordance to a contract made with Frank Dale Construction. As of May, Frank Dale Construction owes Richardson Mechanical just under half a million dollars. 


Osburn Contractors Hired by MW Builders

Lien Amount: $429,967.73
Claimant: Osburn Contractors
Hiring Party: MW Builders
Property Address of Lien: 310 S. Houston St., Dallas, TX
Property Owner: Equity Hotel Group, LLC | Chatham Dallas DT, LLC
 

Osburn Contractors filed a lien for $429,967.73 on 310 S. Houston St. in Dallas, TX, a property owned by Equity Hotel Group as well as another owner of real estate by Chatham Dallas DT, LLC after being hired by MW Builders. Osburn Contractors is a leading concrete construction service with headquarters in Garland, TX. The company has been sub-contracting for concrete since 1992 and specializes in the construction of commercial structures, multi-story tilt-wall buildings, large-scale paving projects, and multi-level concrete structures (low, mid, or high rise). The property address of the lien is located directly across from Ferris Park in the Reunion District of Dallas with a great view of Dallas’ famed Reunion Tower overlooking the city’s skyline. The actual property sought to be charged with a lien by Osburn Contractors is the Courtyard by Marriott – Downtown Dallas. Osburn Contractors provided concrete related materials to improve the real estate of the Marriott. 


Moline Construction Management Hired by Quorum Hospitality

 Lien Amount: $424,178.52
Claimant: Moline Construction Management
Hiring Party: Quorum Hospitality, LLC
Property Address of Lien: 14901 Dallas Parkway, Dallas, TX
Property Owner: Quorum Hospitality, LLC

The third-largest lien field in Dallas County for May of 2019 also deals with a Marriott with Moline Construction Management filing a lien for $424,178.52 on 14901 Dallas Parkway, Dallas, TX. The lien was against Quorum Hospitality, LLC after also being hired by Quorum. Moline Construction Management is based out of Addison, TX and is licensed to operate in 24 states from coast to coast. Moline Construction specializes in project management, retail, and commercial finish out, and agricultural/engineering assistance. The property address of the lien is located about 30 minutes north of Dallas at the Marriott Dallas/Addison. According to the official affidavit for mechanic’s lien, the labor performed by Moline Construction Management was described as renovation construction and structural improvements to the hotel. With a location only minutes from both DFW and Dallas Love Field airports, the Marriott is conveniently located in suburban Dallas and has also racked up a lien just under half a million dollars.


SRG Solutions Hired by Office Installations

Lien Amount: $359,215.00
Claimant: SRG Solutions
Hiring Party: Office Installations
Property Address of Lien: 400 N. Olive Street, Dallas, TX
Property Owner: Chartres 400 LLC

Based out of Houston, TX, SRG Solutions filed a lien on the property address of 400 N. Olive Street, Dallas, TX for the amount of $359,215.00. SRG Solutions is the first millwork contractor on our list of half a million dollar liens in Dallas County and provides custom commercial furniture. The company prides itself with over 175 years of combined service. Thus, SRG Solution is likely no stranger to liens of this nature with Chartres 400 LLC. The property of this lien also involves the hospitality industry, this time dealing with a Sheraton Hotel. According to the lien, SRG Solutions furnished labor and materials to the Sheraton Hotel in an agreement with Office Installations doing business as Siteline Interior Carpentry, Inc. SRG Solutions provided the fabrication and installation of architectural millwork, metal finishes, solid surfaces, and upholstery. The services provided by SRG Solutions date back to February and March of this year.


Mercedes Restoration Hired by Campbell Road Church of Christ

Lien Amount: $341,065.80
Claimant: Mercedes Restoration
Hiring Party: Campbell Road Church of Christ
Property Address of Lien: 2828 W. Campbell Rd, Garland, TX
Property Owner: Campbell Road Church of Christ
 

After being hired by Campbell Road Church of Christ to conduct cleaning, repair, and restoration services, Mercedes Restoration (DBA Mr. Restore) with offices in Lewisville, TX filed a lien on 2828 W. Campbell Rd, Garland, TX for a total of $341,065.80. Mercedes Restoration specializes in fire and water damage cleanup, sewage removal, and other restoration services throughout the Dallas area. Mercedes Restoration was called in by Campbell Road Church of Christ to alleviate water and smoke damage. The water extraction and remediation were billed at $186,376.21 alone, tallying up to 42% of the total invoice for Campbell Road Church of Christ. Cleaning totals billed by Mercedes Restoration for the church added up to $86,777.86, while the electrical damage ran as high as $51,122.81. The general demolition of the project ended up costing Campbell Road Church of Christ $23,321.14. Interestingly enough, the Campbell Round Church is located less than half a mile away from the CM Partners LP job site in Garland. 


The five largest liens for Dallas County in May 2019 total out to over $2M

Dallas’ May 2019 lien data has clearly showcased how much risk there can be when doing construction in the hospitality industry. Many of the building projects for hotels, restaurants and other hospitality companies are larger in scale and require commercial-grade materials and layers upon layers of inspection. Projects of this scale require a lot of capital and a lot of payment exchange that can get held up at different parts of the paychain. There is also the rigamarole of keeping up with dozens of monthly notices in Texas to protech your lien rights on these larger projects. With three out of the five top liens for Dallas County having ties to either a Marriott or Sheraton hotel, it is noteworthy that the Dallas area is building in tourist attractions calling for the creation or additions to hotels. In a DallasNews.com article from last year, it was reported that Northern Dallas outpaced the rest of the country in hotel growth. As of November 2018, the Dallas area had the third-largest number of hotel rooms under construction in the nation at 6,223. It makes sense that $1.2M of the $2M in liens filed in the month of May were within the hospitality industry. Here is the total mechanics lien rundown: 216 liens were filed by about 180 businesses for the amount of $7,693,650.66 in the month of May alone. While the biggest liens were close to a half-million dollars, the smallest lien claim was made for only $30. If that doesn’t showcase the breadth of payment issues in construction, we don’t know what will. 

 

Payment will always be a pressing conflict with construction. Even for a large city such as Dallas and its surrounding area, the five largest liens filed in a single month add up to over $2M. What is even more stunning is a major market such as Los Angeles, CA has a top-five largest liens tallying up to over $37M also from May of 2019. To put that in perspective, Dallas’ total of 216 different liens did not even hit $8M in May. Regardless of your market, you could payment problems are happening everywhere in construction on projects of all shapes and sizes. From thirty dollars to the high six-figure mark, and all the way to the tens of millions, 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.