Question
Can a subcontractor supply their own supplies for projects they do from a supply store they own?
1 reply
Feb 20, 2020
Contractors are not specifically limited in where they obtain the materials for use on a construction project in Texas. Whether the contractor supplies their own materials or contracts with a third-party supplier makes no difference.
With respect to mechanics lien rights, or other payment protections, rules, or requirements, what generally matters is the identity of the party with whom the claimant contracted. If contracting directly with the property owner, the requirements for a direct contractor apply, or if contracting with some other party, the derivative claimant requirements apply - whether the materials were supplied by the claimant or purchased from a third party. If the supply store is only affiliated with the claimant, and is some third party who sells the supplies to the sub instead of it just being inventory owned by the sub, the supply store may protect its own contributions to the project though the exercise of its own lien rights.