In the Texas construction industry, ensuring payment for your work can sometimes be challenging. A mechanic’s lien is a legal tool you can use to protect yourself if you are a contractor, subcontractor or supplier who has provided labor or materials but has not received payment.
Understanding when to use a mechanic’s lien is important for anyone in the Texas construction sector.
Address payment disputes with a lien
A mechanic’s lien can be a useful tool if there is a dispute over payment, whether it is about the amount or the quality of the work. It can give you leverage in negotiations and help ensure you receive compensation for your work.
Use the lien for unresolved payment issues
If you have contacted the client or general contractor about payment repeatedly and have not succeeded, it might be time to file a mechanic’s lien. This is especially true if several months have passed since you completed the work.
File before the deadline
You must be mindful of the Texas deadline for filing a mechanic’s lien. Missing this deadline can result in losing your right to file. You should file a mechanic’s lien as soon as you complete your work and have not received payment. The deadline for filing a lien varies depending on your role in the project and the project type. For non-residential projects, you have until the 15th day of the fourth month after you provided labor or materials to file the lien. However, for residential projects, you have until the 15th day of the third month.
Remember, a mechanic’s lien is a powerful tool that can help ensure you get fair compensation for your work in the construction industry.