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What are my options for collecting from a General contractor that is currently over four months past installation?

Rize Properties a general contractor we have done business in the past for hired us and provided a company purchase order for the installation of patio fencing four (4) town homes 303, 309, 311, 313 W. Prospect Ave, Mount Prospect, IL 60056. I was told it would be funded by the end of the year back in November. I am unable to get any call back from their office or project manager after numerous calls. I wanted to know if the addresses where the fences were installed can have a lien placed on them after 4-months has past. If not I am wondering if I can send a crew to service the gates and leave documentation at the houses that we were there to do service and make that the last day work was performed and hence have a lien filed.

1 reply

Jan 16, 2020

The deadline for subcontractors and suppliers to file mechanics lien claims will vary depending on whether the project is considered residential or commercial. For projects residential in nature, the deadline to file a mechanics lien is the 15th day of the 3rd month after the month when the work was done. For commercial jobs (which will generally include developments that span multiple lots, if done for the same owner), this deadline is a month longer. You can see a helpful chart and breakdown of those timeframes here: When is the deadline to file a Texas Mechanics Lien? Note, though, that in order to preserve the right to lien - monthly notices are generally required in order to preserve that right to lien, and you can read more about the required notices here: Texas Preliminary Notice Guide and FAQs. Finally, note also that manipulating mechanics lien deadlines generally won't end well. And, the last furnishing date will typically not be altered or reset by minor work, servicing, etc.

Recovery options outside of the mechanics lien process

Mechanics liens are a powerful recovery tool, and leveraging the right to lien will usually be more efficient (and often more effective) than pursuing other potential recovery claims. However, liens aren't the only recovery tool available. On the lighter side of things, sending something simple like an invoice reminder can nudge a customer to do the right thing and pay what's owed. An invoice reminder is just like it sounds - it's a simple reminder that payment is outstanding and must be made. Or, escalating things with a payment demand letter could be effective too. Demand letters that include specific legal threats and set a strict timeframe for making payment can help with recovery before an official claim becomes necessary. Finally, sending a debt to collections or pursuing legal action could be worthwhile, too. Claims like breach of contract or a claim under the Texas prompt payment laws could certainly be on the table. And, depending on the size of the dispute, a Texas small claims court could be an option for streamlining legal claims.

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