I did. Not get paid complete in 3 jobs one of them a shopping center can I still file a lien
1 reply
Oct 15, 2019
When unpaid for construction work in Texas, a construction business will generally be entitled to file a mechanics lien in order to compel payment. Granted, there are notice rules that must be followed in order to preserve that lien right. Further, strict lien filing deadlines will apply.
Levelset has great resources for those interested in filing Texas lien claims, including these two articles:
(1) How to File Your Texas Mechanics Lien – A Step by Step Guide; and
(2) Texas Mechanics Lien Guide and FAQs.
Still, let's look at some of the relevant requirements.
Notice requirements
When hired by someone other than the property owner, a Texas lien claimant will have to send monthly notices in order to preserve the right to lien.
Texas requires that monthly notices be sent in order to preserve the right to file a valid and enforceable mechanics lien. For commercial construction projects, a construction business must send a 3rd month notice if they were hired directly by the project's GC, and both a 2nd and 3rd month notice must be sent if hired by someone other than the project's GC.
You can learn more about these notice requirements here: Texas Preliminary Notice Guide and FAQs.
Mechanics lien deadlines
A Texas mechanics lien on a commercial constuction project must be filed by the 15th day of the 4th month after the month during which the lien claimant last furnished labor or materials. And, if the deadline comes and goes before a mechanics lien is filed, then a valid and enforceable lien claim cannot be filed.
Recovery options before filing a mechanics lien claim
Finally, note that there are recovery tools that can be helpful before jumping straight into a mechanics lien claim. Sending invoice reminders and demand letters can be effective steps toward recovering payment without having to actually file a mechanics lien. Often, it only takes a little nudge to get payment talks moving in the right direction.
A little more formally - sending a warning or threat of lien, like a Notice of Intent to Lien, can serve as a more forceful tool of payment. A Notice of Intent to Lien acts like a warning shot, and it shows the property owner and any other recipients that the lien claimant won't go unpaid without a fight. And, if necessary, a mechanics lien can still be pursued, if need be. More on leveraging lien rights here: What Is a Notice of Intent to Lien and Should You Send One?