The homeowner refused to sign a traditional construction contract, but did agree to a cost-plus arrangement although no legal document was signed. At each payment interval, the homeowner would sign the contractor's invoice and make payment to the contractor. Now that there has been a falling out between the homeowner and contractor, can the contractor file a mechanic's lien? I cannot find anything that says whether a cost-plus arrangement can or cannot file a mechanic's lien. Thank you.
If the property is the owner's homestead (meaning that the owner owns the property and lives there) then the contract with the owner would have to satisfy the requirements of Texas Property Code sections 53.254, et seq., which requires specified homestead lien warnings, signing by husband and wife, and recordation in the county property records.
You really should retain a construction attorney to review and evaluate the legal positions based on the contract and pertinent documents. The right to be entitled to file a mechanic's lien is set out in Texas Property Code Chapter 53, and the contractor really needs to make sure that if he file a lien, he has properly and appropriately done so.
Filing an invalid lien could subject the lien filer to liability under the Texas Fraudulent Lien Act, and the filer could be liable for statutory damages of $10,000, or actual damages, whichever is greater, plus attorney's fees. Facing such a claim would add insult to injury.
Back to your question, a cost plus contract can support the filing of a mechanic's lien, if the filing requirements have first been satisfied.
Good luck.