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Our payment is two months late. Can we file a mechanics lien on a Texas oil field company?

TexasLien Priority
Anonymous Contractor

I am a small contractor who recently remodeled a bunkhouse for a small oil field company. We received a deposit 2 weeks late, then I requested a 2nd draw which was approved and they have not sent the wire transfer even after CEO confirmed he would. It's been about a month and the 2nd draw is is worth 20k at 92 percent completed. I dont want to go back and finish the 100 percent if they wont pay.

1 reply

Matt Viator
Construction Lawyer
Levelset Admin at Levelset
| 1,005 reviews
Feb 14, 2020
Slow payment is incredibly frustrating, and leveraging mechanics lien rights is a great way to speed things up. Before bringing liens into the equation, though, it's usually a good idea to start with less adversarial tools. First and foremost: talking things out is a great option, if possible. Sometimes, simple misunderstandings may be holding up payment. Or, sending a document like an invoice reminder will serve as a reminder of the debt and a request for payment - but it won't rise to the level of threats. Alternatively (or additionally), making threats and setting a payment deadline with a document like a demand letter could work, too. Further yet, because mechanics liens are so powerful, threatening to file a lien is a powerful move, too. So, threatening a lien claim with a document like a Notice of Intent to Lien could be effective move, too. A Notice of Intent to Lien lets recipients know that if payment isn't made and made soon, then they'll be dealing with larger headaches later on. And, I'd assume that oilfield property would be particularly sensitive to the potential for a lien.

Texas mechanics lien rights

As for whether lien rights will be available: Texas does have its own set of lien laws for oil and gas-related work, but the Texas mechanics lien statute will still be applicable to permanent improvements. So, Texas mechanics lien rights will typically be available for those who provide some permanent improvement to the project property but go unpaid for their work. As long as the improvement isn't purely temporary in nature, and if it's attached to the underlying real estate, then presumably it might give rise to a valid mechanics lien claim. For more information on Texas lien rights, deadlines, and other requirements, this resource should provide some insight: Texas Mechanics Lien Guide and FAQs.
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