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Is the Texas Lien Laws different when a project is completed vs. during the project

Texas

Hello, We are a staffing agency that supplies labor to companies. We have filed a lien on a company named Duval using the method of sending a 2 month notice then a 3 month notice then filing the lien by the 4th 15th of the month. This is to my understanding the law for Texas to secure Lien rights on a project that we had sent labor to. We have received a letter from Duval's attorney stating that we only have a 30 day window after completion of the project to file a lien to secure our rights legally. The project ended a week or two after the last day we had our workers on the site. Can you please provide any details about this. It is my understanding that (At all times) we go by the, 2-3 month notice, 4th month file, process. I have never heard of this "30 day window" upon completion of the project idea. Please advise. Thank you,

5 replies

Mar 16, 2021

Texas mechanic's lien laws are difficult to understand and to apply. On a commercial project, a laborer is entitled to file a mechanic's lien by the 15th day of the fourth month after last day of the last month in which labor or materials were furnished. But the owner is only required to withhold retainage from the original contractor until 30 days after the work is completed (assuming that the owner had not received funds trapping notices or claims on the retainage before 30 days had elapsed). So, if you have not been paid, make sure that you mail by certified mail notices of non-payment and to trap funds to the owner and original contractor.
That will extend the time for you to file a mechanic's lien. Retain a construction attorney to evaluate your situation and to provide advice. Good luck.

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Mar 16, 2021

So our workers were last out there the first week of September. The first notice (2-month) would be scheduled to be sent to owner and contractor on November 15th, being the second month after September. If the project ends in the last week of September, then the Owner's 30 days would end on the last week of October, when we wouldnt even be required to send a notice yet by that point in time. Does this sound correct?

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Mar 16, 2021
Daniel – The 30-day window does not sound correct. I am happy to advise further. I have expertise in these matters. Thanks, Lauren
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Mar 17, 2021

If this is a commercial project (not a residential project), the second month notice need only be mailed by certified mail to the general contractor. The third month notice has to be mailed by certified mail to the owner and general contractor. If the project has been fully complete, and there were no notices of non-payment or requests to trap funds issued to the owner, then the owner can release the retainage to the general contractor. Good luck.

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Mar 17, 2021

I am sorry but I am not understanding your answer, I just want to make sure that I clarify. We are not a subcontractor. And do not have a contract for work performed. We are a temporary staffing agency that provides day labor as needed. Retainage does not apply to us. We get paid for the labor we provide companies. Could you please provide more details, because to my understanding we did everything according to the law in order to protect our lien rights on this property.

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