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DO WE NEED TO FILE MONTHLY NOTICES & DO WE HAVE LINE RIGHT ON A GOVERMENT JOB?

TexasPreliminary Notice

We currently have a customer (installer) that purchases material from us for government jobs (Housing Authority City of El Paso) they are performing in Texas. Due to the nature of the jobs for this customer should we still file the monthly notices and mechanics lien if necessary? The material we sell to the customer is custom and produced to spec. Based on this should we send out the Prelim Notice form named “ Specially Fabricated Materials Notice “ or what is the correct form name?

1 reply

Aug 16, 2019
When project property is publicly owned, that property is generally not subject to lien. So, where a public entity owns the property that's being worked on, other claims - such as, potentially, a payment bond claim - are generally more appropriate. Note, though, that just because there's some public involvement in the project doens't necessarily mean that a lien claim can't be made. Ultimately, it will typically come down to whether the owner of the underlying project property is a public or private entity. You can learn more about Texas payment bond claims here: How to Make a Texas Payment Bond Claim. Notice of Specially Fabricated Materials Regardless of whether a project is public or private, Texas claimants providing materials that are specially fabricated should generlaly send a Notice of Specially Fabricated Materials in order to best preserve their payment rights. Otherwise, a claimant might be limited to payment claims only on materials that have been specially fabricated but also incorporated into the project. And, in a situation where an order is cancelled or where the materials don't make their way into the project one way or another, this could leave a supplier exposed with fewer recovery rights. Monthly notices Further, on both public and private Texas projects, parties hired by someone other than the owner will need to send monthly notices in order to preserve their right to make either a mechanics lien claim or a payment bond claim. This is in addition to any other notice - including a Notice of Specially Fabricated materials. The rules are a bit different depending on the type of project, but they're both broken down in great detail on this page: About Texas Preliminary and Monthly Notices.
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