Menu
Home>Levelset Community>Legal Help>What is TX State Chapter 2253 ?

What is TX State Chapter 2253 ?

OhioBond Claims

Hi, we sent Notice of Intent to lien on a project and the Owner of the property responded back with the following letter. We don't know what this letter entice, or what action are they requesting from us. Can you please help us interpret what the following language from the Owner means ? Can we still file a Lien ? " This will acknowledge receipt of your letter regarding your agreement with BE&K Building Group LLC, the general contractor for the above referenced construction project at Commerce, Texas. The bonding companies for this contract are Fidelity and Deposit Company of Maryland at 210 N Charles St, Baltimore, MD 21201 and Zurich American Insurance Company at 1400 American Lane, Tower II, 5th Floor, Schaumburg, IL 60196. The state law which requires a bonding company for contracts in excess of $25,000.00 is Chapter 2253 of the Government Code. I would recommend that your attorney review the content of Chapter 2253. Chapter 2253 precludes the Owner (The Texas A&M University System) from withholding any monies due the general contractor to satisfy a claim for any subcontractor or material supplier. Further, mechanic's liens are not permitted on public improvements unless the right is expressly conferred by statute or on projects where payment and performance bonds are required. This public work project did require and have both performance and payment bonds. Claimants are cautioned that no lien exists on the funds unpaid to the contractor and that reliance on notices sent to the Owner may result in the loss of your rights against the contractor and/or his Surety. I can appreciate your situation and, because the law does carry a time limitation for filing of claims, I suggest that you take your necessary actions expeditiously. For your information, I am including a copy of the payment bond and a copy of the public work contract as information required in your filing process. The phone number for the Texas Department of Insurance is (800) 252-3439. Please furnish this office a copy of any actions taken and any satisfaction received on your claim. " Below is my contact info. Thank you 614-493-2410 xt. 3025 aibrow@alphaiwp.com

1 reply

Mar 6, 2020
Texas Ch. 2253, refers to the state "Little Miller Act." Under these regulations, any state construction project over $25,000 is required to post a payment and performance bond. Liens are typically not allowed to be filed on public projects, to avoid private citizens having an interest in public property. The appropriate remedy to get paid on a these types of projects would be to make a claim against the payment bond. The process in Texas for making a bond claim is relatively similar to the lien process, but there are some differences. See How to Make a Texas Payment Bond Claim for a full breakdown of the process. Here are some resources you may find helpful:
0 people found this helpful
Helpful