Menu
Home>Levelset Community>Legal Help>Max Retainage Entitlement

Max Retainage Entitlement

TexasMechanics LienRetainage

If there are no more funds to "trap" or if the subcontractor does not send proper trapping notices, what is the maximum amount that the sub can file a lien for? 10% of it's subcontract with the general contractor? Or 10% of the general contract?

7 replies

Jun 30, 2020
Hi, The subcontractor can file a lien for the full amount of the work that it has completed and not been paid for. The purpose of trapping is to tell the owner to withhold payment from the GC that should be going to the subcontractor. Just because you do not send the proper notice to trap funds does not mean you cannot lien. Hopefully, however, you have complied with the rest of the procedure to properly file a lien against the owner's property. Feel free to reach out. E. Aaron Cartwright III 214-789-1354 Aaron@EACLawyer.com
0 people found this helpful
Helpful
Jun 30, 2020
So, even if you don't trap funds, you have access to the full retainage (10% of the general contract), not just the retainage on your indivdual subcontract?
0
Report Spam
Jun 30, 2020
You are only entitled to the retainage that would come from the work you completed. If the full contract was $100K and your subcontractor portion was $20K, and $2K was withheld from your payment request of $20K (10%), you only have a claim for $2K in retainage. You not entitled and will not receive anything above your $2K in a claim for retainage. -Aaron
0 people found this helpful
Helpful
Jun 30, 2020
If you properly trap funds but there are none remaining by that time, are you entitled to the general contract retainage or would you still be limited to the retainage on your work?
0
Report Spam
Jun 30, 2020
If you properly instructed the property owner to trap funds, the Texas Property Code says that the property owner would be liable to you for the result of their failure. Usually, that means they would be liable to you for pre and post judgment interest, attorney's fees, and the amount of the retainage that they failed to withhold. I'm not looking at it right now so I do not remember if there is anything in the Property Code allowing for additional damages for wrongful withholding of retainage. -Aaron
0 people found this helpful
Helpful
Jun 30, 2020
Okay, but what if it's at the end of the project and there's no funds available left to trap except for the money that has been held as the general retainage?
0
Report Spam
Jun 30, 2020
If there is money that was held as part of the General Retainage, then your money would be in there, would it not? Whatever was withheld from you should be paid out of that fund. Am I missing something? -Aaron (214) 789-1354
0 people found this helpful
Helpful