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We are still owed half of our retainage. What are our recovery options in the state of Texas?

TexasMechanics Lien Retainage

Anonymous Contractor

We have a job that we are still owed half of retainage. We just received the first half of retainage on September 2017. We submitted the invoice for final retainage two years ago August 2015. Our question is what else can we do? Could we still place a lien, just to cover ourselves?

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 1,005 reviews

Nov 13, 2017

It's great news that the first half of retainage was finally paid- that's a promising sign that they're willing to work with you. Unfortunately, the deadline to file a lien on retained funds has passed- two years is well beyond the deadline to file under Texas Property Code § 53-103. Plus, there are a required notices, and the deadlines for those notices have also passed. Also, filing a lien after the deadline has passed can compound your problems. However, merely sending a Notice of Intent to Lien could help speed up the payment process, even when the ability to actually file a lien is not present. Otherwise, sending a demand letter or threatening to file suit will usually kickstart the process for recovering payment. In the meantime, it's a good idea to consult with a Texas construction attorney to assess your position if things do come down to litigation.

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