LIEN CLASSIFICATIONS

Lien Classifications

These lien deadline reminders are provided to you as general guidance only. LIEN DEADLINES AND NOTICE DEADLINES ARE VERY EASY TO MISS OR TO FILE INCORRECTLY!! Do not use this as your sole guide for getting your lien claims and notices filed on time. Be sure to review your particular job with this office or other legal counsel.

These guidelines are here for our clients to determine how they are classified under Texas lien law and what needs to happen in order for our office to be able to file a lien claim on the client's behalf. First, determine whether or not you are an Original Contractor, a Subcontractor, or a Sub-Subcontractor. Second, determine what type of job you are working on. With that information, you should be able to use this page to get a general idea of what needs to happen in order to protect your interests. Government-owned projects and bonded jobs are treated differently than what is discussed here, and you will need to contact us for more information on those jobs.

Question 1: Am I an Original Contractor?
If I contracted directly with the owner of the project, I am an original contractor.
If the answer is no, you are a sub-contractor.

Question 2: Is the construction to be performed on a “residence”?
A residence is a structure that is, or is intended to be, used as a dwelling by one of the owners.

DATE “INDEBTEDNESS ACCRUES”
The deadlines are calculated from the day on which the “indebtedness accrues.” That may begin:
1) The last day of the month in which your materials/services are provided
2) The last day of the month in which the project was completed
3) The last day of the month a settlement is reached between the OC and the Owner prior to completion
4) The last day of the month the original contract is terminated in writing by either the OC or the Owner
5) The last day of the month the project is abandoned
There are lots of different variations to this, so if you have any questions be sure to ask your legal counsel

NOTICE DEADLINES
1) Original Contractor/Non Residential Project
No pre-lien notice requirement
Lien must be filed before the 15th day of the FOURTH calendar month after the indebtedness accrues.

2) Original Contractor/Residential Homestead
Written, signed contract required before any work begins.
Contract must be recorded with the county clerk.
Lien must be filed before the 15th day of the THIRD calendar month after the indebtedness accrues.

3) Original Contractor/Residential Non-Homestead
No pre-lien notice requirement
Lien must be filed before the 15th day of the THIRD calendar month after the indebtedness accrues.

4) Subcontractor/Non Residential Project
Agreed Retainage Notice (if any) must be sent to the owner or reputed owner no later than the 15th day of the second month after the month in which the claimant's fires labor or materials were furnished following the agreement calling for contractual retainage.
Special Fabrication Notice (if any) must be sent to the owner or reputed owner for specially fabricated material no later than the 15th day of the second calendar month after the month in which the claimant has received and accepted the order for specially fabricated material.
Notice of Unpaid Balance must be sent no later than 15th day of the THIRD calendar month after EVERY unpaid month in which labor was performed or materials were furnished.
Lien must be filed the earlier of:
a) the 30th day of actual completion of the project, or
b) the 15th day of the FOURTH calendar month after the day on which indebtedness accrues.
If the debt involves specially fabricated material or contractual retainage, those dates change, and you'll need additional assistance.

5) Subcontractor/Residential Project
NOTE: To be able to file a proper lien as a subcontractor in a residential homestead project, the OC must have completed the first two steps of 2) above.
Any Special Fabrication Notice must be sent before the 15th day of the SECOND month after the month in which the claimant has received and accepted the order for specially fabricated materials.
Notice of Unpaid Balance must be sent before the 15th day of the SECOND calendar month after labor was performed or material furnished.
Lien must be filed the earlier of:
a) the 30th day of actual completion of the project, or
b) the 15th day of the THIRD calendar month after the day on which indebtedness accrues.

6) Subcontractor who contracted with another subcontractor (Sub-Subcontractor)/Non-Residential
Agreed Retainage Notice (if any) must be sent to the owner or reputed owner no later than the 15th day of the second month after the month in which the claimant's fires labor or materials were furnished following the agreement calling for contractual retainage.
Special Fabrication Notice (if any) must be sent to the owner or reputed owner and a separate notice to the Original Contractor for specially fabricated material no later than the 15th day of the SECOND calendar month after the month in which the claimant has received and accepted the order for specially fabricated material.
Notice to Contractor of Balance Due must be sent before the 15th day of the SECOND calendar month after EVERY unpaid month in which labor was performed or material furnished.
Notice of Unpaid Balance must be sent before the 15th day of the THIRD calendar month after EVERY unpaid month in which labor was performed or material furnished.
Lien must be filed the earlier of:
a) the 30th day of actual completion of the project, or
b) the 15th day of the FOURTH calendar month after the day on which indebtedness accrues.

7) Sub-Subcontractor/Residential
NOTE: To be able to file a proper lien as sub-subcontractor in a residential homestead project, the OC must have completed the first two steps of 2) above.
Special Fabrication Notice (if any) must be sent to the owner or reputed owner and a separate notice to the Original Contractor for specially fabricated material no later than the 15th day of the SECOND calendar month after the month in which the claimant has received and accepted the order for specially fabricated material.
Notice to Contractor of Balance Due must be sent before the 15th day of the SECOND calendar month after EVERY unpaid month in which labor was performed or material furnished.
Notice of Unpaid Balance must be sent before the 15th day of the SECOND calendar month after EVERY unpaid month in which labor was performed or material furnished.
Lien must be filed the earlier of:
a) the 30th day of actual completion of the project, or
b) the 15th day of the THIRD calendar month after the day on which indebtedness accrues.

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T: (512) 869-7566
F: (512) 869-8312
1104 Rock St., Georgetown, Texas 78626

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