Contractor’s Construction Liens in Texas

Getting paid for your services is a major concern for contractors in the construction industry. Mechanic’s and Materialmen’s liens can secure payment when a contractor is not paid on time or as agreed. The law office of Henry A. Jakob is focused on real estate and business law in Houston, Sugar Land, Katy and surrounding areas and can help manage financial risks faced by construction contractors.

Construction Lien Basics

Mechanic’s and Materialmen’s liens, also called “M&M liens”, are used to secure payment for work performed or materials supplied for improvements to real property in residential and commercial projects. In Texas, these liens are designed to provide the contractor a lien against the real property they have improved or constructed by providing labor or materials. M&M liens can prevent the sale or transfer of the real estate property until the amounts owed are paid to the contractor.  By filing suit to foreclose the M&M lien, the contractor may be able to force the sale of the property to recover the amount owed to the contractor.

The Time Factor

Mechanic’s and Materialmen’s liens must be perfected in a timely manner. The types of notices required and the deadlines for giving required notices and for filing M&M liens varies depending on whether the contractor worked directly for the owner (an original contractor), for the original contractor, or for a subcontractor.  The deadlines also vary between homestead, residential and commercial property.

Common Mistakes

Some of the most common mistakes made by construction firms include the following:

  • Failing to obtain a written contract signed by all owners of homestead property before providing any labor or materials;
  • Failing to send correct notices before their deadlines;
  • Failing to identify the owner of the property;

We can help you avoid missteps that could potentially prevent you from collecting the money you are rightfully owed.

At the law office of Henry A. Jakob, we have years of real estate experience in Houston, Sugar Land, Katy and the surrounding areas.  We can provide guidance and support in filing liens and collecting the money you are owed. Call us today at 832-879-2244 for a consultation. We look forward to helping you achieve your goals in the Texas construction industry.

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