Home>Levelset Community>Legal Help>What type of document should I sent for a job we have not received payment on in Texas?

What type of document should I sent for a job we have not received payment on in Texas?

TexasPreliminary Notice

We have a project that began in December of 2018 and just finished on the 12th of this month that we have retainage on. We are the sub and did the fire sprinkler install. What would be the best document to send on this project?

1 reply

Jul 31, 2019

Texas has some of the most complex and confusing mechanics lien and notice laws in the country. Participants other than direct contractors must send (at least one) notice for every month in which they furnish labor or materials to the project for which they remain unpaid. These notices are due 2 months, 3 months, or both 2 and 3 months after each month in which the participant furnished labor or materials to the project for which they remain unpaid, depending on the project type and the tier of the party providing the notice.

Accordingly, if there is money due for work performed or labor furnished in the previous months 2 or 3 months, a "monthly" or "fund-trapping" notice should be sent to retain lien rights.

Additionally, as well as the monthly notices, Texas also requires a Notice of Contractual Retainage to be provided on projects on which retainage is being held. This retainage notice must be given to the owner (and to the original contractor if there was no direct contractual relation between the original; contractor and the party giving notice):

“not later than the earlier of:
(1) the 30th day after the date the claimant’s agreement providing for retainage is completed, terminated, or abandoned; or
(2) the 30th day after the date the original contract is terminated or abandoned.

0 people found this helpful

Helpful