The Best Practice for you is to start each month by reviewing all open and unpaid invoices.
Look at this chart and see which monthly notice(s) could be due this month, and then determine whether you have any unpaid invoices that would trigger your monthly notice.
Wednesday, 1/15/20 | ||
May 2020 | Wednesday, 7/15/20 | Friday. 8/14/20 |
June 2020 | Friday. 8/14/20 | Tuesday, 9/15/20 |
July 2020 | Tuesday, 9/15/20 | Thursday, 10/15/20 |
August 2020 | Thursday, 10/15/20 | Friday, 11/13/20 |
For example, pretend the current month is January. Looking at the table above, you’ll notice the 2nd Month Notice is due for jobs unpaid from November, and the 3rd month Notice is due for jobs unpaid from October. Therefore, if you have any open invoices from October or November, you need to send your monthly notices in January.
The type of project (residential, commercial, and state/county) will determine whether you need to send a 2 month notice or a 3 month notice.
In addition to project type, your tier on the project also plays a role in determining whether you have 2 and/or 3 month notices due.
Group the jobs into buckets based on who your customer was. Figure out when you were hired directly by owner, when you were contracted directly with the GC, and when you were hired by a subcontractor or another second tier party (someone besides owner or GC).
For as many crazy rules that Texas has in their mechanic’s lien and notice scheme, it’s surprising how little guidance there is about the notice forms and documents itself. Texas Property Code §53-056(b) is as detailed as we get, and it simply says: “…must give…written notice of the unpaid balance…”
When it comes to the contents of your Texas Monthly Notice forms, therefore, there is a lot of flexibility. Nevertheless, it’s a good idea and a best practice to clearly communicate about the debt, the project, and the laws being used in your Texas Monthly Notice. You don’t want to be in a situation where you’re wondering (or fighting about) whether the notice was sufficient or not.
It is best practice to include the following information on your notice:
It’s taken us from a kindergarten education to a post-graduate law degree.”
Danetta Haynes
Controller, International Marble Industries