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A Subcontractor need to provide invoices of expenses, receipts and proof of expenses to contractor?

I'm working with Z lien on projects, we send out notices . The contractor is requesting invoices, receipts, checks payment and proof of expenses for the project Do I have to provide all the information to the contractor or is against to perfect lien provide those?

1 reply

Oct 16, 2018

There are a couple different levels to this question. There can (and generally are) differences between what is mandated by lien law, what may be required by contract, and what is generally just good practice.

First, with respect to notice and lien law, there is certain information that must be provided and certain information or attached documents that may or may not be included. In Texas, a claimant may "attach a copy of any applicable written agreement or contract and a copy of each notice sent to the owner" but it is not required to do so. Additionally, the lien "is not required to set forth individual items of work done or material furnished or specially fabricated." While the lien is required to include a "statement of each month in which the work was done and materials furnished for which payment is requested" there is no specific requirement that this should be through invoices (with associated receipts and other documents) a listing on the lien claim itself is sufficient.

Texas also requires "monthly" notices to be sent in order for derivative claimants to remain in a secured position. These monthly notices also require certain information - interestingly, a "copy of the statement or billing in the usual and customary form is sufficient as notice" provided, presumably, that they contain all the required information.

What may be required by contract is a different issue entirely. While the contract does not control what must be provided with a lien or notice, it may specify other requirements.

Finally, there is the question of what is practically a good idea to provide. In a situation in which a party is trying to get paid and keep things running smoothly, providing supporting information for the payments requested is generally a good idea. Making things visible (whether that's who is on the project, how much is owed, or something else) is a good step in making sure that payment problems can be avoided. Whether a party wants to provide 1) more information than may be specifically required; or 2) provide such information to parties other than those with whom they contracted, is a business decision. But one that could have impacts on the timing of payments.

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