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A Contractor walked off the job of a bathroom remodel.

TexasChange OrdersMechanics LienPayment DisputesRight to Lien

We contracted with a local remodel company. We informed the company of our budget for the bathroom remodels. There was a total of three bathrooms that were to be done. We have a signed contract and an email that includes from him the scope of work. We were given budgets for tile and flooring, he picked lights for 2 bathrooms. Hardware was not specified in the contract but we purchased this at our costs. He received 1/3 at signing then another 1/3 once he had completed 2 bathrooms with some small items that needed to be addressed. We then also gave him another 5000.00 draw on the total contract. We did have him sign the receipt of these payments on our copy of the contract. Work is almost complete but he approached my husband yesterday Friday and demanded 5000.00 more dollars for change orders. We have not signed any change orders and the contract specifically says that all change orders be in writing and signed by both parties. He walked off the job asked for his tools which we let him have he also too all the materials that were being used for the job paint, tile and flooring. The floor and tile work have been completed with the exception of a small area that needs grout. We still owe him 8650.00 but the job is not complete. We are missing the floating and painting of the master bath and bedroom, the shower door and the shower head. There is also some additional cabinet work for the closets bathroom cabinets. He has stated unless we give him an additional 5000.00 and the balance to complete the job he will put a lean on our home. What are our options?

1 reply

Mar 19, 2020
Mechanics lien rights are generally only available for authorized work that permanently improves the project property. So, amounts that represent work that's not yet been done cannot be included in a mechanics lien claim. However, all work that's been agreed upon and performed could be subject to lien. Regarding change orders - generally, if the contract calls for written change orders, then the change order must be made in writing in order for lien rights to be present for that work. And, when an owner hasn't authorized changes or even been aware of them, then that owner should be able to fight off a contractor's claim for payment on those changes. However, the Texas Property Code doesn't specifically comment on change orders, so this could be the basis for dispute and land in the grey area. This recent TX question and answer discusses change orders in detail, too.

How to defend against a Texas mechanics lien

It can be hard to defend against a mechanics lien claim before it's actually been filed. One option could be to try and discuss the matter with the contractor and agree on some form of settlement or altered payment schedule. Certainly, working with a contractor will create less headaches than working against them, if possible. Another option might be to escalate the matter a bit. Sending the would-be claimant a letter demanding that they refrain from filing a lien could help to fend off the lien claim. Including specific legal threats - like taking action under Texas' harsh wrongful lien laws - could convince the claimant to refrain from pursuing a lien claim. Sending the letter via attorney could demand more respect there, too. Finally, under Texas Property Code § 53-171, an owner may be able to record a surety bond for the protection against lien claims before a lien is filed. Generally, the ability to bond off a Texas lien will only be present after the lien has been filed. But, § 53-171(a) states that the bond may be filed with the county clerk to protect against a lien if a lien is filed or is attempted to be filed. So, if a claimant is threatening to file a lien, that might be possible. Certainly, after a lien gets filed, the owner may bond it off.

Additional resources

If a lien claim actually gets filed, then an owner will have a number of different options for proceeding - like negotiating a settlement, bonding off the lien, challenging the lien filing, bringing claims against the claimant, etc. But, in the meantime, it might be worth touching base with a Texas construction attorney while waiting to see whether the claimant will actually pursue a lien. With all of the above information in mind, these resources should be valuable if a lien claim may soon be filed: (1) I Just Received a Notice of Intent to Lien – What Should I Do Now?; and (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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