Commercial landlords often allow commercial tenants to construct a buildout tailored to their business (e.g., retail stores, restaurants, redesigning office space, etc.) Such tenants hire general contractors who in turn hire subcontractors and suppliers. What lien rights do such subcontractors and suppliers have?
How to Perfect and Enforce a Mineral Lien: 6 Steps
If you furnish labor or materials to an oil or gas well and are not paid, then you should consider filing a mineral lien. Below are the steps to perfect a mineral lien.
7 Ways to Manage the Credit Risk of a New Customer
Get the project information up front
You should ask your customer for the owner’s name and address, the location of the project, a copy of the payment bond (if any), and the general contractor’s name and address (if you are a second tier subcontractor or supplier). Having this information at the outset will help you quickly send out bond and lien notices if the new customer falls behind on making payments.
Increasing Your Recovery Under a Federal Payment Bond Claim
Federally owned construction projects are covered by a Miller Act Payment Bond for the benefit of the subcontractors and suppliers thereof. If you make a claim for payment under the Miller Act, you may, under certain circumstances, also have a claim for attorney fees and interest. The text of the Miller Act is silent with respect to attorney fees and pre-judgment interest. However, federal common law allows the recovery of both under certain circumstances.
Collecting Attorney Fees for Lien and Bond Claims
Previously, Texas law provided that a court “may” award costs and reasonable attorney fees in a suit to foreclose a lien, enforce a payment bond claim or declare a lien to be invalid to the extent that such costs and reasonable attorney fees were “equitable and just”. The use of the word “may” allowed courts discretion over whether to award a lien claimant his or her attorney fees. This led to unfair results. Even lien claimants who prevailed did not always receive their attorney fees and/or costs.
The New Lien Waiver Form Prevents Subs and Suppliers from being Strong Armed
Historically, subcontractors and suppliers were compelled to sign onerous and overreaching lien waivers and releases in order to receive payment. In addition, many subcontracts contain lien waivers lurking in the boiler plate. Consequently, subcontractors often do not realize they have agreed to these clauses until it is too late.
Texas law was recently changed to
Why Delivery Tickets Matter
Paperwork can win or lose a lawsuit. This is especially so in
construction litigation. To be entitled to a lien, bond, or any other claim for payment for materials delivered to a construction project, you are not required to show the materials you furnished were installed on the project. However, you must show the materials
Your Last Resort: The Unpaid Account
A suit on an unpaid account against your customer will likely entitle you to the principal balance plus interest and attorney fees. But a suit on an unpaid account is only as good as your customer’s ability to satisfy the judgment. A claim on an account against an entity provides very little leverage. The principals
Adding Another Target: Personal Guaranties
In general, a personal guaranty makes an individual or individuals liable for an entity’s debts or obligations. A personal guaranty which guarantees a general contractor’s obligations to pay a subcontractor is rarely given, but it is common for the principal(s) of a subcontractor with unestablished credit to personally guarantee the debts and obligations of the
Mineral Liens: An Underused Tool
If you provide services or supplies in the oil field, you should have at least a basic understanding of Texas mineral liens because filing a mineral lien may help your bottom line someday.
Who can file a mineral lien?
A mineral contractor or subcontractor may file a lien to secure payment for labor or services