Home>Levelset Community>Legal Help>have a AIA contract with a customer. on late fees we agreed to 10% but did not state weekly monthly or annually. what would the persumption be?
have a AIA contract with a customer. on late fees we agreed to 10% but did not state weekly monthly or annually. what would the persumption be?
i want to lien a project and im trying to total amount owed
1 reply
Jan 28, 2019
That's a good question, and it's one we get pretty often here at the Construction Legal Center. When filing a mechanics lien in Texas, it's risky to include any amount that doesn't directly relate to the value of labor and materials that were furnished. Looking directly to the Texas Property Code - the amount on a mechanics lien relates to the work performed. Under § 53-023, "The lien secures payment for: (1) the labor done or material furnished for the construction or repair..." - it doesn't say anything about extra amounts owed under contract. While extras like filing fees, attorney fees, and interest might eventually be granted by the court - including any amount over the value of work provided could put the entire claim at risk if it's determined the lien claim is in excess of what's allowed. With all that in mind, there's something else worth noting: The mere threat of lien is often enough to compel payment. By sending a document like a Notice of Intent to Lien, a lien claimant can show that they're serious about filing a lien and that they'll do what it takes to obtain payment. Further, since a Notice of Intent to Lien is not a document required in order to preserve lien rights in Texas, a claimant might be able to include interest in its calculation when threatening lien. Plus, if the threat of lien is ineffective, a claimant can always proceed with their lien claim anyway (though again - claimants should be careful to include only amounts that are lienable under statute). You can learn more about the Notice of Intent to Lien document here: What is a Notice of Intent to Lien?. For more on the Texas lien requirements, this resource should be helpful: Texas Lien & Notice FAQs.