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What Can I do To Protect My Lien Rights for Temporary Work Space

TexasRecovery OptionsRight to Lien

My company is located in Texas Will I have lien rights against a company who provides/delivers temporary work space on/for construction sites. The units can be there for weeks and/or months at a time. We install HVAC in these units and have many issues with getting paid on time and would like to get it under control.

3 replies

Sep 26, 2019
Mechanics lien rights arise for work that's done which permanently improves the project property. But, when work is done on a temporary improvement designed to be removed from the property, lien rights will generally not arise. Even where the improvement is intended to be left on a project for a relatively extended amount of time, if the improvement doesn't become permanently attached to the property where work is being done, lien rights will typically not be present. Granted, that doesn't mean that some other payment recovery option won't work.  Sending correspondence like invoice reminders and demand letters will help keep a payment issue on the mind of a customer. Plus, where leveraging the mechanics lien process might not be an option, other legal functions will work to protect the right to payment - such as the Texas prompt payment laws and the ability to make a claim for breach of contract. And, threatening to take legal action - if such a threat becomes necessary - can be helpful in forcing payment. For a little more background on recovery options outside of the mechanics lien process: Can’t File a Lien? Here Are Some Other Options For Recovery.
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Sep 26, 2019
Hey Matt, Thank you for your response. I understand your reference to lien rights in regards to temporary improvement on a work site, but the work that is done on the mobile offices are permanent and the A/C units are attached. Do we lose our lien right simply because the offices are mobile? Could we not file a lien on the trailer itself (much like a mechanic's lien on a vehicle)?
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Sep 27, 2019
Mechanics liens in the construction context and a "mechanics" lien in the automotive context are a bit different, and they don't actually arise out of the same set of laws. Mechanics lien rights, in the construction context, only apply to permanent improvements made to real property. So, an HVAC system that's installed on a temporary building - whether that installment is permanent or temporary, itself - likely would not give rise to mechanics lien rights since mechanics lien rights (in construction) only relate to real property. But, if that same work were done on an HVAC system in a building that is permanent, then mechanics lien rights may arise. As for automotive liens - I'm not quite as familiar with these. However, it does seem like these types of liens will only apply in a situation including a vehicle.
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