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Co-author: Tim Fandrey

In these unprecedented times, every bit of revenue is critical to the continued operation of nearly every business operating within the construction industry. Fortunately, there are a myriad of remedies to aide collection efforts. Perhaps the most commonly discussed remedy is the mechanic’s lien provided by Chapter 53 of the Texas Property Code Chapter.
Continue Reading Mechanic’s Liens For Design Professionals: A Powerful Payment Collection Tool

When owners file bankruptcy or projects otherwise go south, lien priority often comes to the forefront.  The idea is relatively simple.  Priority is how courts determine which creditors get paid first.  This often pits lenders against M&M lien claimants.  For lenders, their liens typically arise when they record their deeds of trust.  However, for M&M lien claimants, the Texas Property Code has very specific rules that must be followed.
Continue Reading Lien Inception

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?
Continue Reading Filing a Lien When the Work is Done for a Tenant Rather Than an Owner

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.
Continue Reading Collecting Attorney Fees for Lien and Bond Claims

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

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

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?

mineral contractor or subcontractor may file a lien to secure payment for labor or services

In some circumstances one who is normally a subcontractor (e.g., electrician or plumber) may have a direct contract with the owner of the property.  If you have a direct contractual relationship with the owner, you will be considered to be an “original contractor” and you may have a constitutional lien.  The constitutional lien attaches to

If you are a subcontractor or supplier and you ignore your lien rights, you are losing money. A mechanic lien is a subcontractor’s and supplier’s best friend because it allows you to secure your debt by filing a lien against any private real property that you’ve furnished labor and/or materials to improve.

The reason many