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Perfected Your Lien? Think Again.

11/24/2009

by Matthew L. Motes

Texas lien laws are complicated. Depending on your role in a construction project, notice and deadlines vary. In a typical private construction project, the time to file your lien starts when the “indebtedness accrues”. That is the clock start from the last month you provided labor or materials to the project. However, as more and more work is government-related, there is a twist to when to start the time clock for a claim.

On a government project, you typically do not file a lien. What you do file is a sworn statement (affidavit) and proof of claim on the payment bond. The timing appears simple, but it is not. The statute requires the notice to be mailed by the 15th day of the third month after each month in which labor was performed or material delivered. Wait a minute. What does that mean? You must calculate a separate deadline for each month that work is performed. For example, if you do work in January, you must send out your notice by April 15th even if you are still working on the project. If your portion of the work takes a year and payment is slow, you might have to send out several notices with sworn statements. While this may cause tension upstream, it is required by law. Further, sureties routinely deny claims as untimely under this trap. There are other traps for the unwary on government projects; this is just one.

Government work is plentiful but requires attention to detail and legal counsel’s involvement is necessary from time to time to preserve your rights.

Construction