Texas Monthly Preliminary Notice Rules & FAQs
In the world of construction, ensuring you have the right to file a mechanics lien when payment issues arise is crucial. In Texas, a preliminary notice plays a key part of this process, and understanding their rules and requirements is essential for protecting your financial interests. Our guide will walk you through everything you need to know about Texas monthly notices, helping you stay informed and compliant.
But don’t navigate these complex regulations alone—our experienced team at Lien Lawyers is here to assist you. Whether you need clarity on notice requirements, deadlines, or procedures, we can provide the expert guidance you need to safeguard your rights.
What Is a Preliminary Notice?
A Texas monthly notice is a preliminary notice required for subcontractors and suppliers to preserve their right to file a mechanics lien in case of payment disputes. This notice informs involved parties about their rights and the payment obligations associated with a construction project.
Who Needs to Send a Texas Preliminary Notice?
Private Projects
Original Contracts Entered into on or After January 1, 2022
- General Contractors: Generally, general contractors are not required to send preliminary notices on private projects. However, for residential projects, they must provide a disclosure statement to the property owner before signing the contract. This disclosure includes a list of all subcontractors and suppliers intended to be used, updated periodically, unless the owner waives this requirement in writing.
- Homestead Projects: For homestead projects, the general contractor must file a written contract with the county clerk before providing any labor or materials. This contract must be signed by both spouses if the property is jointly owned.
- Subcontractors and Suppliers: For both residential and commercial projects, subcontractors and suppliers must send monthly notices no later than the 15th day of the second month following each month in which labor or materials were provided.
Original Contracts Entered into Before January 1, 2022
- Suppliers of Specially Fabricated Materials: If materials were specially fabricated but not delivered or incorporated into the project, suppliers must send a notice to secure lien rights. This notice must be sent no later than the 15th day of the second month after receiving and accepting the order for the materials.
Public Projects
- Payment Bond Monthly Notices: All claimants without a direct contractual relationship with the prime contractor must send monthly notices.
- First-Tier Claimants: Notices must be sent to the prime contractor and surety on or before the 15th day of the third month following each month of work.
- Second-Tier Claimants: Notices must be sent to the prime contractor by the 15th day of the second month and to both the prime contractor and surety by the 15th day of the third month.
- Notice of Contractual Retainage: Must be sent no later than the 90th day after the final completion of the public work contract.
- Notice of Specially Fabricated Materials: Must be sent no later than the 15th day of the second month after receiving and accepting the order.
Changes in Notice Requirements After January 1, 2022
- Residential Projects: For contracts entered into after January 1, 2022, subcontractors must provide a disclosure statement to the property owner before signing the contract. For homestead projects, a written contract must be filed with the county clerk before any labor or materials are provided. Monthly notices must be served no later than the 15th day of the second month after labor or materials were furnished.
- Commercial Projects: For commercial projects, all claimants, other than the general contractor, must provide notice no later than the 15th day of the third month after labor or materials were furnished.
When Are Notices Due?
For Contracts Entered into on or After January 1, 2022
- Residential Projects:
- Disclosure Statement: Must be provided before or included in the contract.
- Monthly Notices: Must be served no later than the 15th day of the second month after labor or materials were furnished.
- Commercial Projects:
- Monthly Notices: Must be served no later than the 15th day of the third month after labor or materials were furnished.
- Notice of Claim for Unpaid Retainage: Must be sent no later than the earlier of 30 days after the contract is completed, terminated, or abandoned, or 30 days after the original contract is terminated or abandoned.
For Contracts Entered into Before January 1, 2022
- Commercial Projects:
- 2nd-Month Notices: Must be served on the general contractor.
- 3rd-Month Notices: Must be served on both the property owner and the general contractor.
- Specially Fabricated Materials: Notices must be sent no later than the 15th day of the second month after the order was received and accepted.
Texas Preliminary Notice Frequently Asked Questions
What Are the Changes in Notice Requirements After January 1, 2022?
For residential projects, the new rules require a disclosure statement from general contractors and the filing of a written contract with the county clerk. Notices for residential projects must be served no later than the 15th day of the second month after labor or materials were provided. For commercial projects, notices must be sent by the 15th day of the third month.
What Happens If a Notice Is Sent Late?
Late notices may result in the loss of the right to file a mechanics lien for the specific month in question. For retainage claims, missing the deadline could prevent recovery of unpaid amounts. However, if previous notices included the amounts, late notices may not entirely prevent recovery.
Who Should Receive the Notices?
Notices should be sent to both the property owner and the general contractor. For residential projects, this applies to contracts entered into after January 1, 2022. For commercial projects, notices must be sent to both the property owner and the general contractor, regardless of contract date.
What Information Must Be Included in Texas Preliminary Notice?
For Contracts Entered into on or After January 1, 2022
- Homeowner Disclosure Statement: Must include statutory language set forth under Tex. Prop. Code §53.255.
- Monthly Notices: Must follow the format under Tex. Prop Code §53.056(a-2) and include:
- Date
- Project description/address
- Claimant’s name and contact details
- Description of labor/materials provided
- Original contractor’s name
- Hiring party’s name (if different)
- Claim amount
- For homestead projects, specific notice language under Tex. Prop Code § 53.254(g)
- Notice of Claim for Unpaid Retainage: Must follow the statutory form under Tex. Prop. Code §53.057(a-2) and include:
- Date
- Project description/address
- Claimant’s name and contact details
- Description of labor/materials provided
- Original contractor’s name
- Hiring party’s name (if different)
- Total amount of retainage unpaid
For Contracts Entered into Before January 1, 2022
- Monthly Notices: Include claimant’s name and address, property owner’s name and address, hiring party’s name and address, a brief description of labor/materials, and property description.
- Notice of Specially Fabricated Materials: Include a statement of the order received and accepted and the price of the order.
- Notice of Contractual Retainage: Must state the existence of a retainage requirement, claimant’s name and address, and subcontractor’s name and address if applicable.
How Should Notices Be Sent?
- Certified Mail: All notices should generally be sent by certified mail. However, Texas lien law permits delivery in person to the recipient or their agent, and documentation of delivery is crucial if done by hand.
How Should Texas Notices Be Sent?
Notices must be sent by certified mail to ensure proper documentation of delivery. Hand delivery is also acceptable but should be documented thoroughly to prove receipt if needed. Generally, the requirement is met upon mailing, though actual receipt may be required in some cases.
What Happens If a Preliminary Notice Is Served Late?
For Contracts Entered into on or After January 1, 2022
- Homeowner Disclosure Statement: Must include statutory language set forth under Tex. Prop. Code §53.255.
- Monthly Notices: Must follow the format under Tex. Prop Code §53.056(a-2) and include:
- Date
- Project description/address
- Claimant’s name and contact details
- Description of labor/materials provided
- Original contractor’s name
- Hiring party’s name (if different)
- Claim amount
- For homestead projects, specific notice language under Tex. Prop Code § 53.254(g)
- Notice of Claim for Unpaid Retainage: Must follow the statutory form under Tex. Prop. Code §53.057(a-2) and include:
- Date
- Project description/address
- Claimant’s name and contact details
- Description of labor/materials provided
- Original contractor’s name
- Hiring party’s name (if different)
- Total amount of retainage unpaid
For Contracts Entered into Before January 1, 2022
- Monthly Notices: Include claimant’s name and address, property owner’s name and address, hiring party’s name and address, a brief description of labor/materials, and property description.
- Notice of Specially Fabricated Materials: Include a statement of the order received and accepted and the price of the order.
- Notice of Contractual Retainage: Must state the existence of a retainage requirement, claimant’s name and address, and subcontractor’s name and address if applicable.
How Should Notices Be Sent?
- Certified Mail: All notices should generally be sent by certified mail. However, Texas law permits delivery in person to the recipient or their agent, and documentation of delivery is crucial if done by hand.
How Should Texas Notices Be Sent?
Notices must be sent by certified mail to ensure proper documentation of delivery. Hand delivery is also acceptable but should be documented thoroughly to prove receipt if needed. Generally, the requirement is met upon mailing, though actual receipt may be required in some cases.
What Happens If a Notice Is Served Late?
For Contracts Entered into on or After January 1, 2022
- Monthly Notices: Missing a deadline means you likely forfeit your right to file a mechanics lien for that period.
- Notice of Claim on Unpaid Retainage: Missing this deadline may not completely prevent recovery if amounts were included in prior notices.
For Contracts Entered into Before January 1, 2022
- Specially Fabricated Materials: Late notices mean you can only claim for materials delivered and used in the project.
Protect Your Payment Rights With Expert Guidance
Navigating the requirements of a preliminary notice is crucial for safeguarding your lien rights and ensuring timely payment for your work. Understanding these requirements can be complex, but with the right guidance, you can protect your financial interests effectively.
For expert assistance with your preliminary notice and/or help with filing a mechanics lien, contact Lien Lawyers today to begin your lien. Our team is ready to help you navigate these requirements, meet deadlines, and secure the payments you’re entitled to. Don’t let payment issues jeopardize your project—reach out now for a consultation and ensure your rights are protected.
