If contractors and suppliers do not get paid on a construction project in Texas, they can file a mechanics lien to secure payment. A mechanic’s lien is a legal tool that provides the unpaid party with a security interest in the property. In Texas, original contractors (GCs), subcontractors, material suppliers, specialty material fabricators, design professionals, and landscapers all have the right to file a mechanic’s lien if they do not receive payment. Parties who contracted directly with the owner of the property in Texas can file a constitutional lien. There are no notice or filing requirements for a constitutional lien, but claimants must meet specific requirements.
On residential projects in Texas, an action to enforce the lien must be initiated by the later of a) 1 year after the last date on which the lien claimant could file the lien, or b) 1 year after termination, completion, or abandonment of the project.
On non-residential projects, an action to enforce the lien must be initiated by the later of either: 1) 2 years after the last date on which the lien claimant could file his lien, or 2) 1 year after termination, completion, or abandonment or the project.
Note: Effective on all original contracts entered into on or after 1/1/22, the enforcement deadline for all Texas liens will be one year from the last date the claimant could file a lien.
To enforce a mechanic’s lien, a petition is filed with the civil court, whereby the contractor, etc. seeks to foreclose on the mechanic’s lien. As part of that petition, other causes of action are asserted, such as breach of contract, quantum meruit, promissory estoppel, etc. In addition to seeking to foreclose upon the mechanic’s lien, a claim for the recovery of attorneys’ fees and costs is also asserted in the petition.