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Completing a big job is its own reward, but getting paid on time allows you to take the next job. It’s always a contractor’s worst nightmare when they complete a project only to have the client avoid paying for the work. And it happens more often than you’d think. Construction liens are a way of guaranteeing payment for services or materials, and the construction lien lawyers at Patout & Shaw have helped dozens of Houston, TX contractors successfully implement them–and get paid.
The construction attorneys at Patout & Shaw are experienced with construction law and have worked with Houston-area contractors for over a decade. We understand the industry and the pressures contractors, designers, and construction professionals face daily. We know the stakes when a client refuses to pay, and that motivates us to find them a solution that allows them to move forward.
We use construction liens, contract claims, third-party mediation, and litigation to ensure that our clients are compensated fairly. Reach out to our seasoned Harris County construction lawyers today to schedule an initial consultation.
A lien is a monetary claim on real property, often as part of taking on debt. The lien services as the collateral for that debt. A construction lien is no different. It’s a lien for labor, materials, and services provided during the construction phase of that property. If a client refuses to pay you for your services, you can levy a construction lien on their property. This lien is specific to the construction industry, and it can help encourage reluctant clients to pay what they owe.
If a design professional, construction company, or material supplier does not receive payment for goods or services they are able to issue a construction lien on the property they worked on. This lien allows the person who filed it to receive payment directly from the real estate. A construction lien makes it difficult to sell or refinance the property. Construction liens are a collection technique often used alongside a contract claim against the property owner.
Most construction liens, also frequently called mechanic’s liens, are filed by contractors, subcontractors, and materials suppliers. But as the name mechanic’s lien implies, anyone who contributed labor, materials, or services to a project may file, such a lien, including the following:
You will be required to adhere to Texas law to file a construction lien, and the rules you must follow depend on the nature of the work you performed.
For residential construction liens, you’ll need to file on or before the 15th of the 3rd month after the contract was abandoned, completed, or terminated.
For commercial construction, you’ll need to file on or before the 15th of the 4th month after the contract was completed, abandoned, or terminated.
Prime Contractors
If you were a contractor dealing with the property owner directly, you’re considered the prime contractor. As a prime contractor, you aren’t required to provide preliminary notice to retain lien rights.
Subcontractors & Material Providers
Subcontractors and material suppliers who work directly with the prime contractor face stricter preliminary notice requirements.
For residential projects, they must notify the property owner no later than the 15th of the 2nd month after the contract was completed or terminated.
For commercial projects, they must notify the property owner by the 15th of the 3rd month after completing or terminating the contract.
A brief outline of the construction lien process is as follows:
As an experienced construction law firm, the professional construction attorneys at Patout & Shaw have helped hundreds of Houston, TX contractors, engineers, designers, and construction professionals get paid for their services.
We’ll work with you through every step of the construction lien process, from preliminary notice to final enforcement of the lien. Our construction lien lawyers won’t rest until you get paid for the goods and services that are owed to you. If you’re struggling with payment from a client, contact us today to schedule a consultation to learn how we can get them to pay what they owe you.
