When I bring up the subject of liening a job with a retainage balance only, the GC will often quote the contract, that states retainage will be paid once the GC has received payment from the owner. Can you offer me a good reply?
The requirements for perfecting a mechanic's lien operate independently, and sometimes at odds with a subcontract. To perfect a mechanic's lien for retainage, you should (ignoring the subcontract) provide notice of non-payment by certified mail to the owner and the general contractor, with a request to trap funds, and notice of retainage.
Retain a construction attorney to review your contract and pertinent documents and to provide advice.
Good luck.
Yes, thank you! Now this would apply to all states, and not just TX, correct? My boilerplate response has been that our lien deadline and rights are independent of the contract. And yes
- we do provide all notices - Levelset walks us through them all.
Texas has some amazingly complex and convoluted mechanic's lien laws. Most other states are simpler.
Hello,
File the retainage lien. Ignore the GC. You can always remove the lien later but you cannot place it if you're late.
E. Aaron Cartwright III
214.799.0776
Info@EACLawyer.com
Christina - you mention filing a lien 20 days after the entire project is finished. But as a Subcontractor, isn't our mechanics lien deadline based upon our last day furnishing work?
Hello,
I'm dealing with this issue now. The reason you are being told to lien within 20 days after the entire project is finished is because your lien deadlines are accelerated at project finish. Basically, if there are any disputed funds, you would need to provide notice and it would be in your best interest to file the lien so as to perfect afgainst trapped funds.
But also, once the project is complete, funds may be paid out to the GC including any funds held in retainage, leaving you needing to perfect a lien against retainage in the 30 day statutory period.
Basically, notice and file in under 30 days and you are good in every situation.
E. Aaron Cartwright III
214.799.0776
Info@EACLawyer.com
Sorry I am confused. Levelset gives us these deadlines for mechanics liens which are based upon our last day on the job. Is this not correct?
15th day, 3rd or 4th month On residential projects, the deadline to file a Texas mechanics lien is the 15th day of the 3rd month after the month in which the claimant last provided labor or materials.
On non-residential projects, the lien filing deadline is the 15th day of the 4th month after the month in which they last furnished labor or materials to the project.
Hello again!
Levelset, wonderful though they are, are not licensed to give legal advice and the people at Levelset giving you these dates and deadlines are not attorneys.
The attorneys here have the correct information because it's our job to be right and so we have to know all of it. Consider contacting a construction attorney.
E. Aaron Cartwright III
214.799.0776
Info@EACLawyer.com
Thanks to you both. All our contracts are with GCs.
We do have an attorney so I am trying to marry what he is recommending with how Levelset handles things for us.
Hello!
In the future, just have Levelset file your liens within 30 days of you completing your portion. You can always remove a lien but you can never rewind time to meet deadlines.
-Aaron
Aaron - And by filing the lien within 30 days afer we are finished, the thinking is that we are filing a lien well before our deadline of 30 days after project completion, correct?