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Can I send my Texas Notice of Contractual Retainage if the job started 6 months ago?

I'm new to sending the TX Notice of Contractual Retainage. I have some jobs that started 6+ months ago and I have retainage held on them. I'm wondering if I can send the notice of contractual retainage to secure my lien rights. Is there any point where it's too late to send that document on a project?

1 reply

Sep 7, 2018

Texas has some of the most complex and confusing notice and lien requirements of any state, so it's a common occurrence for a construction participant to wonder which deadlines apply to which documents, and when those deadlines are.

A notice of contractual retainage must be provided to the owner (and to the GC if the agreement providing for retainage is with a subcontractor) by the earlier of the following dates:

"(1) the 30th day after the date the claimant’s agreement providing for retainage is completed, terminated, or abandoned; or (2) the 30th day after the date the original contract is terminated or abandoned."

If a sufficient notice is sent within the above time frame, the claimant may claim a lien for the retained amount. Note, however, that this notice works to protect lien rights against the retainage amount only - if the goal is to protect lien rights for the entire job, a claimant must send any other required notice (i.e. monthly notices) as well.

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