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Should I send a monthly notice for a change order dispute?

TexasChange OrdersMonthly Notice

We are the sub hired by the GC on a commercial project in Texas. We received an invoice from OUR sub for higher than the original contract. When we sent the change order to our GC for approval, they rejected it. We are in communication on how to solve the issue, but I want to make sure we're protected. We haven't sent an official invoice yet, but should we still send the 3 month monthly notice that's due next week?

1 reply

Dec 9, 2019
If a subcontractor wants to preserve the possibility of a mechanics lien claim, that sub will have to send a monthly notice on unpaid sums. So, if there's any intention of filing a mechanics lien later on, or even if a sub just wants to put a little pressure on their customer to pay a disputed amount, then sending a monthly notice would be appropriate and even necessary. Tracking notice timeframes via invoices is convenient and is a common way for determining what months notice should be sent for. Ultimately, though, notice timeframes are based on the month when work was performed but not paid for. So, having an invoice date isn't necessarily the end-all, be-all for sending monthly notices. If notice will be sent for unpaid work, the notice must be sent based on the month when that work was performed. Further, it's worth noting that mechanics lien claimants are generally entitled to lien even if the amount they're owed is in dispute. Though, there's certainly some gray area when it comes to unapproved change orders.
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