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How to track sub payments to suppliers?

TexasLien WaiversPrompt Payment

The Texas waiver doesn't have the summary box to list material suppliers. How do you keep track of material suppliers payments to avoid liens?

2 replies

Sep 22, 2020

Frankly, there are two basic ways.  One is that the subcontractor has a responsibility to give you timely notice of the work. Another option is to require the general to provide you with such information with the general getting it from the sub. Still, if the sub does not provide timely notice. the sub loses any recourse against the owner. 

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Sep 22, 2020

Hello!

You just ask the subcontractors. Also, you get lien waivers from the subcontractors. Also, you put an indemnity clause in your contract with subs that requires them to defend against and resolve all liens that are placed against the property as a result of the sub's nonpayment.

You will not really know if they are choosing to lie to you. You can, however, protect yourself in the event they are lying to you. Make sure the sub is not a fly-by-night kinda guy so you can track him down if you find out he was supposed to pay a supplier but took your money and ran.

E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com  

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