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What initial notice do I need to send & what’s the deadline?

TexasBond ClaimsPreliminary Notice

We need to begin moving forward on a claim on a payment bond in the state of Texas. We are a sub-contractor hired by the prime contractor. The project was federally funded but the property/land was (I believe) state owned. The state of Texas is named on the bond, so I assume we are using state guidelines/deadlines. Our work was to be paid as a % percentage of completed bid item but after 8 months of various preliminary tasks, meetings, material vendor negotiations, creation of work timelines & consultation, they decided to go with another sub. They sent us an email stating that on 10/19/2018. We invoices them for services rendered & have not been paid/responded to. 1. Does the 10/19 “termination notice” constitute end of work? 2. I have read that a preliminary/monthly notice is required since it’s a Texas state, public project. Is that true? If any notice is required prior to filing the actual bond claim, is it called a preliminary notice or a monthly notice & what is the deadline given the circumstances/dates described above? Thank you so much in advance!

1 reply

Dec 14, 2018
These are great questions. First, to clear up some vernacular - while most states refer to notices that preserve lien rights as "preliminary notices", Texas requires notices on a monthly basis and the notices are commonly referred to as "monthly notices". So, when discussing notices in Texas, "preliminary notice" and "monthly notice" are often used interchangeably. While notice is required in order to preserve bond claim rights on Texas public projects, notice must be mailed no later than the 15th day of the 2nd month after each month in which the claimant furnished labor and/or materials for which there is an unpaid balance. So, notice must be sent after months during which payment is owed and unpaid. Until payment is owed and unpaid, the deadline for sending monthly notice is not triggered. As far as specific dates and deadlines - zlien has built a tool for potential claimants to help determine when their bond claim and notice deadlines occur, which you can find here: zlien Payment Rights Advisor. If you have other questions about deadlines and notices on Texas public projects, this resource should be helpful: Texas Public Project FAQs. Finally, this article might also be of use: Is Monthly Notice Required on a Texas Public Construction Project?
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