Home>Levelset Community>Legal Help>RE TX and TN monthly notices: Our company's invoices are comprehensive of work done over a span of time AND they are sent out according to terms of the contract. How do we calculate when they should go out?

RE TX and TN monthly notices: Our company's invoices are comprehensive of work done over a span of time AND they are sent out according to terms of the contract. How do we calculate when they should go out?

Once I am clear on when we start counting the 90 days, my next question is: On non-residential projects, TX laws indicate the deadline is both the 15th day of the 2nd month, and the 15th day of the 3rd month, following each month in which work was performed and unpaid. (The 2nd month notice has to be sent only to the prime contractor.) Do we need to send out the monthly notice both the 2nd and 3rd months in order to perfect our lien rights? And, will those two monthly notices likely have the same amount due?

1 reply

May 31, 2018

That's a good question, and monthly notice requirements can make it hard to stay compliant.

In Texas, for claimants who contract with someone other than the owner or the prime contractor (i.e. when the customer is a subcontractor or someone further down the payment chain), both a 2nd month notice and a 3rd month notice will be required. Both notices require that the current unpaid balance be identified. If work is ongoing at the time that notice is sent, there's a good chance that the unpaid balance may have changed between the time that the two notices are sent. If they are sent after a claimant's work has been completed, there's a fair chance that the amounts on the notices would remain the same. Regardless, each notice should identify the unpaid balance current to the time when the notice is sent.

The same is true of the Tennessee monthly notice - the amount on the face of that notice should be the amount due at the time it is sent. When work is ongoing, naturally, that amount might change from notice to notice. However, if work has ceased and no payment has been made, it would be common for the amount due to remain the same from month to month.

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