We are a GC and hired a subcontractor who performed poor workmanship and after multiple disputes, the contractor left the project and didn't fulfill his contract. The contractor had two separate contracts, one for wall assemblies and one for wall finishes. The contractor performed a small portion of the wall finishes contract, but all work had to be redone due to extreme poor quality. We received a Pre-Lien on 10/14/2021 and NOTICE OF LIEN FILING AND DEMAND FOR PAYMENT on 10/15/2021. We are unsure how to dispute the Lien Filing and didn't have adequate time to dispute it. Is there a template or standard for filing disputes? Is our subcontractor allowed to file a lien within 24 hours of receiving an emailed prelien?
The legal analysis would start with a review of your subcontract with the subcontractor, and then extend to any communications which have occurred and to the notice letters and the mechanic's lien.
I assume that your references to "contractor" were really for the "subcontractor" who filed the mechanic's lien.
You really should retain a construction attorney to review and evaluate your legal position based on the subcontract and pertinent documents. The right to be entitled to file a mechanic's lien is set out in Texas Property Code Chapter 53, and you really need to make sure that the subcontractor's lien was proper and appropriate.
Filing an invalid lien could subject the filer to liability under the Texas Fraudulent Lien Act, and the filer could be liable for statutory damages of $10,000, or actual damages, whichever is greater, plus attorney's fees.
A mechanic's lien is not valid if no debt is owed. So, for example, if the subcontractor had been fully paid for the work that the subcontractor had properly performed, then the subcontractor was not entitled to file a lien for work not performed, or lost profits on completing the project.
You should consider preparing a letter to mail by certified mail, return receipt requested, to the subcontractor to set out the facts, point out why the lien is invalid, and to demand the relief that you want. Attach support for your letter such as photographs of deficient work, or back charges for defective work. Make sure that your letter is professional and business like as it may be evidence later.
You can secure a bond to indemnify against lien. The effect of filing the bond is to remove the lien from the real property and to have it attach to the bond. You can back charge the subcontractor for the cost of securing and filing the bond.
Good luck.