Property owners frequently fail to pay contractors, subcontractors, construction workers, and other professionals in the construction industry for work they complete. This leaves building tradespeople in the unfortunate position of needing legal methods to help recoup payment for their labor and materials used for construction projects. Construction liens are legal claims documents that can be used in the construction industry to preserve the right to compensation for those professional tradespeople. Usually filed as a claim by contractors, these documents are valuable when seeking unpaid compensation for services rendered for completion of a construction project.
The laws regarding construction liens vary from state to state. First of all, construction liens are often referred to in different ways. In Texas, the law and construction industry professionals most commonly refer to these claims documents as mechanic’s liens. Mechanic’s liens guarantee payment to contractors, subcontractors, builders, and construction firms and can extend to suppliers as well. These liens are often useful to ensure completion of construction projects, remaining in effect until all parties have been paid because of the threat of foreclosure or even forced sale of a property to pay tradespeople from the proceeds—the consequences of having a lien essentially function as motivating insurance that building tradespeople will be paid for their completed contracted work.
According to Texas law, mechanic’s liens can be used to address unpaid building tradespeople for labor and contractors, subcontractors, and suppliers for unpaid costs of materials related to a construction project. Liens describe the nature of the debt, the amount(s) owed, and the payees seeking compensation. They become public record; and if the debt is not paid within a designated period of time, the property owner’s credit and ability to sell/refinance the property can be significantly affected.
Each state different laws that specify who can file mechanic’s liens and define the types of costs that may be covered by those liens. In Texas, general contractors, subcontractors, material suppliers and fabricators, and design professionals can file mechanic’s liens to address non-payment. Texas mechanic’s liens cover almost all construction costs—more specifically, this includes everything from surveys and labor to materials and rented equipment, as well as any other resources used to build, remodel, or make repairs during a construction project. Mechanic’s liens are advantageous tools for construction industry professionals to use when seeking to collect payment, whether it is a contractor collecting from an owner or a subcontractor collecting from a contractor, etc.
Filing a mechanic’s lien in Texas can be challenging because of the confusing rules and regulations of the process. If you need a competent, reliable construction attorney to help you understand mechanic’s liens, Reeves Law, PLLC can assist you. The professionals at Reeves Law can help you to navigate the complicated legal process for filing mechanic’s liens. The qualified team at Austin, Texas-based Reeves Law is committed to providing personalized attention for every client so that you have a thorough understanding of the construction laws related to your specific situation. Contact Reeves Law to discuss how you can secure your Texas lien rights during a free consultation.