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How can I file a notice for retention?

4 months ago

How can I file a notice for retention?

Chief Legal Officer Levelset
41 reviews

Texas has very complex rules and requirements surrounding retainage, and making a claim for retain age requires sending a notice and a claim.

For private projects, the applicable rules for a “preliminary” Notice of Contractual Retainage can be found in § 53-057. This notice is an additional requirement separate and distinct from the “monthly” notices that are required in Texas, and is also separate from actually making a claim on the retained funds.

The Notice of Contractual Retainage must be given to the owner (and to the original contractor if there was no direct contractual relation between the original; contractor and the party giving notice):

“not later than the earlier of:

(1) the 30th day after the date the claimant’s agreement providing for retainage is completed, terminated, or abandoned; or

(2) the 30th day after the date the original contract is terminated or abandoned.”

This means that a contractual retianage “preliminary” notice must be provided within 30 days of the end of the claimant’s work, unless the original contract was terminated or abandoned prior to that date, in which case the deadline is shortened to 30 days after the termination or abandonment of the original contract.

In addition to the notice mentioned above, the claimant must also file a lien affidavit. There are requirements with respect to dates/deadlines, form, and more with respect to the lien affidavit, as well. More information can be found here.

Additionally, the stress can be removed by using an online platform to help you with tracking these deadlines, and through which you can prepare and send the required notices and claims. If you want to send a notice of contractual retain age, or file a lien claim, you can do so here.

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