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Will a signed Work Authorization suffice for signed contract? (TX job)

Texas
Anonymous General Contractor

My questions is in regards to residential/homestead jobs in Texas, I understand that I need to have a contract signed by both parties, if applicable, to submit with the Affidavit of and Filing of Contract to the county. Though, my question is will a signed Work Authorization suffice for a signed contract? We are mobilizing to TX to help out with the CAT they are currently facing. We work directly with the homeowner, though we are given the lead by their insurance carrier, whom we are on program with. All of these jobs will be emergency service - mitigation jobs. We do not know what the contract amount will be until after we have completed the job depending on how much equipment is set/used and how many labor hours incurred. Once complete, we submit job scope to insurance company, they approve and cut check in both homeowner and our (as contractor) names, in which the homeowner endorses to us for payment. With all this being said, we do not know the contract amount initially and I know the Affidavit and contract have to be filed with county prior to work beginning... does the signed Work Authorization document suffice in a situation like this?

1 reply

Attorney at The Erikson Firm, A Professional Corporation
| 150 reviews
Mar 11, 2021
A signed work authorization could be the basis for a contract. But the contract would not support a mechanic's lien against the homeowner's property unless it contained the statutory warnings set out in Texas Property Code sections 53.254, et seq. A proper homestead mechanic's lien contract could be prepared, but you would have to comply with the requirements set out in sections 53.254, et seq. Retain a construction attorney to evaluate your situation and to provide advice. Good luck.
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