We are an equipment rental company in Texas. Is the last date of labor performed/materials furnished the day we drop the equipment, the day we pick it up, or the last invoice date?
Mar 29, 2018
Generally, an equipment lessor's last furnishing will typically be the last date for which their equipment was rented for use on a given project. If the equipment is no longer being rented and simply lies dormant on the property, this would likely not work to extend a mechanics lien filing deadline. This is reinforced in the Texas Property Code at § 53-001(4)(B) where "material" is defined as "rent at a reasonable rate and actual running repairs at a reasonable cost for construction equipment used or reasonably required and delivered for use in the direct prosecution of the work at the site of the construction or repair." Since a person has a lien for furnishing materials, and because the deadline to file such a lien runs from the date of last furnishing, it follows that the last date that equipment was rented for use in the direct prosecution of work would serve as the last date of furnishing in Texas.