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Lien threat for accidental use of wrong contractor name.

TexasNotice of Intent to Lien

I have a flip house and hired a prime contractor for all work. He subbed electrical out. The sub then refused to do the work after installing only 3 sockets due to a disagreement on site with the Prime contractor staff. My prime contractor hired a new sub who completed the work and passed inspection. Due to a clerical error by the prime contractor, the original subs name was used on the paperwork with the city for the inspection. The inspection passed. On being notified of the error the sub was immediately removed from the permit. But now the original sub is claiming $1000 from me for using his company name to get the inspection completed. There was no labor or materials used by him other than $89 which he invoiced with the $1000. I offered to pay the $89 if he dropped the $1000 charge. Thanks

8 replies

Mar 22, 2021
An owner's liability to subcontractors on a construction project and particularly a residential project is limited. The subcontractor would have had to have mailed notice of non-payment with a request to trap funds to the owner and original contractor by the 15th day of second month after the month in which the labor or materials were performed. If the subcontractor did not issue such certified mailing, the subcontractor can have no legitimate claim against the owner, and would not have the right to file a valid mechanic's lien. There are other protections for the owner against subcontractor claims. Retain a construction attorney to evaluate your legal situation and rights. Good luck.
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Mar 22, 2021
Thank you for your prompt reply. My question is that. As he didn't do any work or provide materials. Can he put a lien on because the prime contractor used the wrong name on the inspection request. Thanks
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Mar 22, 2021
According to your facts, the electrical subcontractor installed three sockets. Whether or not the subcontractor can file a legitimate mechanic's lien for the three sockets would depend on whether the sub provided certified mail notice to the owner of non-payment with a funds trapping notice by the 15th day of the second month after the unpaid work occurred (and other requirements for the perfection of a mechanic's lien).
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Mar 22, 2021
Thank you, he has not as yet done that, but there is still time to do so. But his threatened lien of $1000 is for use of his name on the inspection not for the sockets or labor. Is that a legitimate or accepted reason for a lien? Thanks
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Mar 22, 2021
A mechanic's lien under Texas law has to be supported by debt, and an improvement to the real property at issue. If there is no labor or materials that improved the property, then a lien would not be legitimate. Retain a construction attorney to evaluate your situation and to provide advice. Incidentally, during what month did the subcontractor install the three sockets? If the work occurred in or before February 2021, and the subcontractor did not provide notice by certified mail, the subcontractor missed its opportunity to do so. Good luck.
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Mar 22, 2021
I am sorry, if the work occurred in or before January 2021, and the subcontractor did not provide notice by certified mail, the subcontractor missed its opportunity to do so.
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Mar 22, 2021
Thank your for you guidance. It helps a lot. FYI. The 3 sockets were installed 11th Feb. Regular invoice via e-mail (not certified) received last week broken down as $89 for materials and $1000 for use of company name. So if I count 45 days from then he has end of this week to sever me and the GC with a certified invoice for the materials or he's out of luck.. Again thank you for your time. should I get the letter, I will retain your services.
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Mar 22, 2021
Email does not count. Certified mail is what is required. The deadline for claim notice for work that occurred in February 2021, would be April 15, 2021. Good luck.
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