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How can owners protect from dishonest contractors

TexasMechanics Lien

I am the owner, I payed 90% of the job and retained 10% to be sure the contract completed the job but they don’t what to finish the job and they walked away abs not answering call or emails (I know by law I can retain the 10% per 30 days abs I am still on thta window ). Now a subcontractor that I did not do any business with is calling telling the contractor has not pay any to them which is about 40% or the total cost . They will file a lien against the property. What can o do to protect myself if I has being paying on time . The 10!% pending does not cover the subcontractor bill and for material, I actually paid the 50% in advance for material about 3 months ago The contractor is being totally dishonest in this case .

3 replies

Aug 12, 2021

Hello,

Respond to the subcontractor and tell him that you paid the GC the monies that were due to him. Consider showing copies of the checks (without your account number). Offer him the 10% retainage that is to be used for this purpose.

In the event that he files a lien, sue him or wait to be sued in District Court. When y'all get to District Court, add the GC as a responsible party and show the court where you paid the GC and how the GC is responsible for payment of the subs. Also show where you offered the 10% retainage that should've been withheld for just this purpose.

E. Aaron Cartwright III
214.799.0776
Info@EACLawyer.com

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Aug 12, 2021
The contractor actually gave the sub two checks that were returned because of not sufficient funds and the contractor asked the sub to go to my property and remove the HVAC system . He is telling the Sub thta the machines are his property because he originally paid for them and is his right to remove the HVAC from my property any time he wants. Even thought I paid on time . I showed the invoice showing i only have 10 % to pay because they have not finish the job. I offered to give a final check with both the sub and the contract name . But the sub is still telling he will go to my property and take the machines unless I repay to him. Is this even possible...........??
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Aug 12, 2021

You do not indicate what kind of project - residential or commercial. The steps and requirements for a subcontractor to file a valid mechanic's lien are different.

You also do not indicate whether the work was for your home. If the work was for your home, and your home is your homestead (you own the home and live there), then your contract with the contractor would have had to comply with Texas Property Code sections 53.254, et seq., which require statutory lien warning notices, signatures by husband and wife (if married), and recordation in the county property records. These formalities typically do not occur. Without them, no one on the project could file a legitimate mechanic's lien under the Texas Property Code.

The subcontractor was required to provide notice of non-payment by certified mail, with a request that you trap funds from the contractor. If the subcontractor did not provide the notice, then the subcontractor does not have a valid mechanic's lien claim.

Retain a construction attorney to evaluate your legal situation, and to provide advice.

Good luck.

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