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Pre-emptive lien

TexasLien PriorityMechanics LienPayment DisputesPreliminary NoticeRight to LienSlow Payment

What is the best way to protect ourselves prior to beginning a large reconstruction project? We are taking on a home reconstruction valued at 300-400k soon. We know the homeowner's intention is to sell the property after the project is complete. How can we preemptively protect ourselves to minimize the risk of payment issues down the road?

1 reply

Apr 17, 2020
The answer is a well-drafted contract. As this is a residential contract, MAKE SURE EACH OWNER OF THE HOUSE SIGNS THE CONTRACT AND EACH CHANGE ORDER ENTERED THEREAFTER. This is one of the few issues that can defeat a Texas constitutional lien. Next, Texas statutes set out form language that MUST be placed in residential construction contracts. Make sure this various language is in your agreement. Finally, if this is a time and materials contract (common in renovation projects), make sure it is very detailed as to your rates and the methods of approval for the various materials. If you would like additional assistance in contracting this project, please feel free to reach my office directly. Ben House 281-762-1377 ben@houseperron.com
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