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What amounts/month do I file lien for?

I am in the state of Texas, we are a subcontractor to the general contractor who is contracted with the owner directly. Since our projects go on for a few months in the commercial realm, and I have already sent the notice out did one of the months we are owed for, do I file the lien for just that month or the months following that as well even though they are technically not “past due” yet and we have not sent the notices out for the following months, as they would be due this month.

1 reply

Dec 17, 2019

First, it's worth noting that Texas' mechanics lien deadline is generally the 15th day of the 3rd or 4th month after the last month during which the lien claimant furnished labor to the project. And, considering that mechanics lien claims are typically considered the "nuclear" option, it's usually a good idea to wait until that deadline draws closer before deciding to file a mechanics lien rather than filing a lien before the deadline for some invoices has even passed. You can take a deeper look at the deadlines here: When is the deadline to file a Texas Mechanics Lien? Even if a claimant does decide they want to file their lien before all relevant monthly notices would be do - it might be wise to first send the relevant notice anyway. For one, monthly notices serve as payment reminders and attempts at recovery, themselves. Further, failure to send monthly notices could end up ruining a claim anyway. Plus, monthly notices that are sent early are generally effective, to boot.

Other recovery tools before pursuing a Texas mechanics lien

As mentioned above, a monthly notice serves as a pretty solid payment recovery tool, itself. But, escalating things some - with a document like a demand letter - can be helpful, too. Demand letters inform customers that if payment isn't received soon, then the sender will have no choice but to explore the recovery tools available to them - such as mechanics liens or legal claims. Further, sending the threat of a lien claim to both your customer and the project owner could be effective, too. A Notice of Intent to Lien is a warning shot, letting recipients know that if payment isn't made and made soon, then the property will be liened. Considering the drastic nature of lien claims, and considering Texas contractors are legally obligated to protect project owners from their subs' lien claims, this should help to put pressure on customers to make payment. More on that here: What Is a Notice of Intent to Lien and Should You Send One?

Additonal resources on Texas mechanics liens

It's unfortunate, but mechanics lien claims will sometimes be necessary. For situations where a lien claim may be necessary, these resources should be helpful: - Texas Mechanics Lien Guide and FAQs - How to File Your Texas Mechanics Lien – A Step by Step Guide to Get You Paid

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