I have a contractor in Texas that wants to use a Masters lien waiver to close out the job/ please let me know your thoughts on this/if the construction company goes bankrupt with unpaid invoices what happens.
Thank you for your Time
1 reply
Jul 8, 2020
Hello,
Texas does not have a Master Lien Waiver. The documents recognized as lien waivers in this state are:
Final Payment - Conditional Waiver & Release
Final Payment - Unconditional Waiver & Release
Progress Payment - Conditional Waiver & Release
Progress Payment - Unconditional Waiver & Release
If a construction company goes bankrupt with unpaid invoices and the subcontractors are still within their window, the subcontractors may notice and place a lien on the owner's property. If the subcontractors are outside of their statutory window for placing a lien and have not gotten paid, they will need to become a creditor in the construction company's bankruptcy proceedings.
E. Aaron Cartwright III
214-789-1354
Aaron@EACLawyer.com