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are the installation of equipment in a chemical plant considered 'construction' and are they subject to liens?

TexasPrompt Payment

I work in a chemical company. Contractors are subject to the Texas early payment rule (payment for construction within 35 days) We are trying to determine if 'construction' is for equipment installed in a chemical plant - pumps, exchangers, reactors, etc. Some people indicate that if the equipment is made to be removed, then it really is not 'construction' just 'parts' and is not subject to mechanics liens and not subject to the texas early payment requirement. I believe that equipment installed in a chemical plant (parts that make the chemical plant operator) should be considered 'constuction'. Just like a car - the transmission is designed to be replaced - so heat exchangers and pumps in a chemical plant are also made or designed to be replace - your thoughts?

3 replies

Jan 5, 2022

The law changed effective January 1, 2022. As revised, Texas Property Code Chapter 53 probably includes work and materials such as the installation of pumps and equipment which are incorporated in the work.

As long as the equipment was installed, it does not matter for the purposes of asserting a mechanic's lien if the equipment "is made to be removed." That issue could be important for a removables claim asserted as part of a mechanic's lien. However, if the equipment was installed simply by plugging in an electrical cord (like a refrigerator), it may not qualify as part of a mechanic's lien.

Retain a construction attorney to evaluate your legal situation and to provide advice.

Good luck.

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