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Can I file a Lien?

Texas

I am a fire alarm contractor working on a large commercial project. We completed our work in July of this year and have not been paid the retention for the Job. The General Contractor says he will not pay unless we repair some damage to our work that was done by others for free. He is also knit picking the job trying to find any reason he can not to pay the retainage. There is nothing wrong with the fire alarm system, the customer has full and complete use of the system. We have kept up with our filings on the job through Levelset. They say they are giving me 3 days notice to complete the repairs.

2 replies

Oct 19, 2021

Hello!

No, you may not file a lien for retainage. The time alloted by statute for that passed almost two months ago.

You may sue the GC for breach of contract in the court of your choice. Be prepared for the counter argument that you did not complete X, Y, Z to his satisfaction and he should backcharge you.

E. Aaron Cartwright III
214.799.0776
Info@EACLawyer.com

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Oct 19, 2021

The legal analysis would start with a review of your contract, and then extend to any communications which have occurred.

Concerning the prospects of filing a mechanic's lien, you really should retain a construction attorney to review and evaluate your legal position 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 you really need to make sure that if you file a lien, you have properly and appropriately done so.

Filing an invalid lien could subject you to liability under the Texas Fraudulent Lien Act, and you 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.

Concerning the request for repair to alleged damage, you may consider performing the work under protest, reserving your rights to seek extra compensation, and adding that amount to your mechanic's lien.

Good luck.

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