Constitutional Liens Versus Statutory Liens in Texas: Two Lien Rights and Why Both Exist
Texas is one of the only states where a mechanic's lien right is written into the state constitution. Article XVI, § 37 of the Texas Constitution provides that "mechanics, artisans, and material men, of every class, shall have a lien upon the buildings and articles made or repaired by them for the value of their labor done thereon, or material furnished therefor." It then instructs the legislature to provide for the enforcement of those liens, which the legislature did through Chapter 53 of the Texas Property Code.
Read MoreConstruction Contracts: What Every Contractor and Subcontractor Should Negotiate Before Starting Work
A construction contract allocates risk. Every provision in it determines who bears the cost when something goes wrong, who gets paid and when, who's responsible for delays, who carries insurance, and who indemnifies whom. Contractors and subcontractors who sign contracts without negotiating these provisions accept the drafter's allocation of risk, and in most cases the drafter is the owner or the general contractor, which means the risk flows downhill.
Read MoreConstruction Defect Claims in Texas: Liability, Standards, and the RCLA Notice Requirement
When construction work is defective, responsibility is only the first question. You also need to know what process to follow before you can pursue a claim, what damages you can recover, and how long you have to bring the action. Texas applies different rules to residential and commercial defect claims, and the distinction affects every stage of the dispute from pre-suit notice through trial.
Read MoreConstruction Trust Fund Claims Under Chapter 162: When Diverting Payment Becomes a Criminal Offense
A general contractor receives a $500,000 progress payment from the owner. Instead of paying the subcontractors and suppliers who performed the work, the contractor uses the money to cover payroll on another project, make a truck payment, or fund personal expenses.
Read MorePay-When-Paid and Pay-If-Paid Clauses in Texas: What They Mean and Whether They're Enforceable
Most construction subcontracts contain a provision that ties the subcontractor's payment to the general contractor's receipt of payment from the owner. These clauses come in two forms that sound similar but produce very different legal consequences.
Read MorePayment Bond Claims on Texas Public Projects: How to Collect When You Can't Lien the Property
You can't file a mechanic's lien against government-owned property. On a private project, an unpaid subcontractor or supplier perfects a lien under Texas Property Code Chapter 53, and the lien attaches to the property itself, forcing the owner to address the claim before selling or refinancing.
Read MoreRetainage in Texas Construction: When It Must Be Released and What Happens When It Isn't
Retainage is the portion of each progress payment that the paying party withholds as a performance guarantee during construction. On a $1 million contract with 10 percent retainage, the owner pays 90 cents of every dollar earned and holds back the remaining 10 cents until the project is complete.
Read MoreTexas Mechanic's and Materialman's Liens: Deadlines, Notice Requirements, and How to Perfect Your Lien
If you furnished labor or materials on a Texas construction project and didn't get paid, a mechanic's lien is the most powerful tool you have. It attaches to the property itself, not to the person who owes you, which means the owner can't sell or refinance without dealing with your claim first.
Read MoreTexas Prompt Payment Act: Deadlines, Penalties, and Interest When an Owner or Contractor Pays Late
Texas has two prompt payment statutes for construction, and which one governs your project depends on who owns it. Private projects are governed by Texas Property Code Chapter 28. Public projects (state agencies, counties, cities, school districts, and other governmental entities) are governed by Texas Government Code Chapter 2251.
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