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Filing a Mechanic's Lien question

I'm a General Contractor who has completed a project roughly a year a go in McKinney, TX. There were 2 agreements that were executed for this project: Contract amount on the AIA 101, and a separate Funds Control fee separate from the AIA101. The Contract amount has been paid off after completion, however, a separate Funds Control agreement that was also executed amongst us (GC) and the client hasn't been honored. I was interested in filing a Mechanic's Lien for this case on nonpayment for "Labor" regarding funds management on the project. However, it doesn't necessarily pertain to the contract amount. Would filing the Mechanic's Lien be appropriate for this type of case on nonpayment from client?

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Mar 12, 2021

The legal analysis would start with a review of the documents that you signed, and then extend to any communications which have occurred. You may have a right under the Texas Constitution to file a mechanic's lien even though a year has passed, although your rights to a Texas Property Code lien may have lapsed. Retain a construction attorney to evaluate your situation and to provide advice. Good luck.

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Mar 12, 2021

Thank you for the information.

Asides from the timespan of the funds control agreement, would this type of case for nonpayment be appropriate to file a Mechanic's Lien?

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Mar 12, 2021

If part of your compensation for constructing the project was tied up in the funds control agreement, then it would appear that you would have a right to a mechanic's lien, and in this case, perhaps a Constitutional Lien. Retain a construction attorney to evaluate your claim, and to provide advice. Incidentally, I am located in Dallas. Good luck.

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