Nearly two years after the company was formed in November of 2018, Houston-based NSPS Metals is now close to settling into their new steel distribution and processing center. 

But for at least five contractors, the construction of the two-year-old company’s new home has left them still seeking payment for their work. 

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As of August 14, 2020, five active mechanics lien claims worth $2.27 million have been placed on NSPS Metals’ 130,000-square-foot service center located 25 miles northwest of downtown Houston along U.S. 290.

A mechanics lien is a security interest used by unpaid contractors to help secure payment for their labor or materials furnished to the property. Each mechanics lien was filed against the project’s general contractor, American Commercial Contractors, according to the lien affidavits.  

The project, which also includes 5,000 square feet designated to office space, is still being constructed as of September 2020. 

According to a report from the facility’s groundbreaking ceremony in March of 2019, the project was scheduled to be completed by early 2020. The report also states a contemplated second phase of construction that would double the property in size to 260,000 square feet. 

The five mechanics lien claims were filed with the Harris County clerk’s office. Liens must be filed with the clerk in the county where the property is located, according to Texas mechanics lien requirements.

5 Potential Claims Total $2.27M 

The five subcontractors are allegedly owed a total of $2,272,942.41 for work constructing the NSPS Metals’ new service center facility, located at 16415 Tuckerton Rd., Houston, TX. 

The largest lien filed against the GC of the five claims was from Myrex Industries on August 14, which claims they are still owed $1,288,676.70. According to the lien affidavit, the subcontractor installed the structural steel for the project between October of 2019 and May of 2020. 

On September 14, subcontractor Miller Builders, LLC filed a mechanics lien claiming $417,466 from American Commercial Contractors.

Subcontractor George Hedge Contractors, Inc. processed their lien claim worth $247,549.23 on August 18, 2020. A day later, All Texas Electrical Contractors, Inc. placed their six-figure lien of $231,096.82 against the project’s GC. 

The fifth lien, valued at just over $88K, was filed by a paint stripping subcontractor in Houston on September 11, 2020. 

A 2018 Joint Venture Creates NSPS Metals

In November of 2018, NSPS Metals was formed following a joint venture agreement between Nippon Steel Trading Americas, Inc. (NSTA) and Pacesetter. During the joint venture announcement, both companies also announced the creation of the now liened property in Houston owned by NSPS Metals. 

Both NSTA and Pacesetter are now set to use the new steel coil facility for their procurement, operations, marketing, and supply chain functions.