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Most construction payment chains have multiple tiers. The property owner typically pays a general contractor, who, in turn, is responsible for paying various subcontractors and suppliers at each phase of project completion. Far too often, general contractors, subcontractors, and their suppliers are forced to fall back on public safety nets when they don’t get paid for their work or aren’t fairly compensated.
If you’re owed money for a construction project in Texas, you have the right to use affordable lien solutions that ensure properties can’t be bought or sold until you get the money you’ve worked to earn.
But there’s a catch. Workers and suppliers only have a limited amount of time to take action against a business owner, homeowner, or contractor when payments aren’t made. Although waiting too long can invalidate your claim, hiring an attorney can end up costing thousands of dollars.
Instead of investing most of the money you’re owed into legal fees, consider maximizing your savings by filing the documents yourself—online. With the right online lien filing platform, the entire process is a lot easier than you might expect.
How Texas Contractors Save Time and Money by Investing in Self-Service Lien Solutions
Most attorneys charge by the hour to complete forms and submit the documents contractors, subcontractors, and sub-subcontractors need to pay their workers and protect their businesses.
Whether you’re an architect, drywaller, electrician, plumber, or have provided any other skill or materials needed to complete a project you didn’t get paid for, you’ve likely weighed the cost of hiring an attorney against the amount you’re owed. It happens. Attorney fees add up quickly.
When you work in Texas, there’s no reason to let lawyer fees get in the way of collecting the money you’ve earned. Instead of paying by the hour to consult a lawyer in person, you can file the appropriate forms online for a fraction of the cost. With the right platform, you’ll have everything you need to complete the essentials in as little as 15 minutes. You can:
- Notify property owners and/or general contractors of your intent to file a lien
- Complete and file a mechanic’s lien form
- Complete and file a bond claim form
- Have your lien and bond-related documents notarized
- File your liens with the appropriate county (or confirm where to file in person)
- Complete and file a notification of lien removal after you’ve been paid
In short, you can complete the entire lien process online, quickly and efficiently. Let’s look at some important considerations for doing this.
File the Right Type of Lien Before the Non-Negotiable Deadline to Protect Your Rights
The payment chain for construction projects can be frustrating and complicated. Many property owners and their lenders assume the contractors they’ve paid along the way have been distributing the appropriate funds down the line as expected. There can be so many people involved in the chain of command that owners and even their general contractors can be unaware of outstanding debt.
In that respect, unpaid workers who file a claim against a property are helping protect the best interests of everyone involved, not just themselves. But their claim forms are only valid when they’re filed by the appropriate deadline.
Related: What are the Steps to File a Mechanics Lien in Texas?
In Texas, there are two kinds of property liens: the type filed for government projects, and the type filed for commercial or residential construction. Before exploring the advantages of online lien filing, you may find it helpful to review the differences between the forms required, their deadlines, and other requirements.
Original Contractor Work Completed on Residential or Commercial Properties
For unpaid work on a home or commercial property, general contractors need to file a document called a mechanic’s or constitutional lien affidavit. To file a mechanic’s lien in Texas, contractors need to have a written contract signed by the property owners. A copy of that document must also be filed with the county clerk’s office.
The deadline for original general contractors requires mechanic’s liens to be filed by the 15th day of the fourth month after the work is completed, terminated, settled, or abandoned. If you’re not quite sure how that works, consider the following examples:
- A mechanic’s lien for a job completed, terminated, settled or abandoned in January needs to be filed by May 15th
- If it happened in February, they must be filed by June 15th
- Filing a lien for services completed in March needs to be submitted by July 15th
Subcontractor Work Completed on Residential or Commercial Properties
When your company is hired by a general contractor to complete a portion of a project on a residential or commercial property, the process is a little different. As a subcontractor, you first need to submit a pre-lien notice by specific dates calculated as follows:
- By the 15th day of the third month after the month the services were delivered.
- Then file the mechanic’s lien affidavit either by the 15th day of the fourth month after the month the services were delivered or within 30 days of completion of the entire project.
If you still have not been paid within a few weeks of sending a pre-lien notice, you have until the 15th day after the fourth month to file a Mechanic’s lien affidavit.
Whether you’re a contractor or subcontractor, any action taken to enforce a lien against a property must be started within one year of the last day you were permitted to file.
Government-Funded Projects and Property Improvements
If you haven’t been paid for work (or supplies) completed on a government-funded project, you need to file a different type of document. Public funded projects are backed by payment bonds held by a surety company. Instead of filing a lien against the property, you need to file a claim against that bond. For bond claims, subcontractors and sub-subcontractors are bound to the same filing deadlines. However, sub-subcontractors have one more requirement.
- For both type of subcontractors, a notice of bond claim must be filed by the 15th day of the third month after the month on which the work was completed
- Sub-subcontractors however, must send an early notice to the general contractor by the 15th day of the second month. An invoice can be considered a notice in this matter. Claimants must file a separate notice of bond claim for each month they worked on a project and did not get paid
- The notices of bond claim must be submitted to the surety company and general contractor
When the 15th day falls on a Saturday, Sunday, or federal holiday, recently updated guidelines allow you to submit your notice of bond claim by the next business day.
How Today’s Advanced Online Platforms Simplify Lien Filing Processes
Hiring a lawyer to handle a mechanic’s lien or bond claim takes time. Depending on your location, the complexity of your case, and the caseloads of the lawyers in your area, you may have to reach out to multiple attorneys. You could also have to wait many days or even weeks for your first appointment and clear your schedule for some face-to-face meetings.
When you file online, you don’t have to waste hours on the phone explaining your situation multiple times. Instead of disrupting your days with meetings and filling out paperwork, you’ll have a low-cost alternative that’s easy to understand and takes a lot less time. Online lien filing platforms simplify your processes in several ways. With the right platform, you can expect some key features and benefits.
Access to Forms You Need When You Need Them
After creating an account on an online platform, you’ll be asked a series of questions to ensure you’re filling out the right form. The documents are easy to navigate because there’s very little legal jargon to decode. But even without the difficult terminology, your online forms are completely valid. The best platforms rely on documents drafted by attorneys certified in Texas construction lien laws.
Automating Essential Processes
Online lien filing platforms automate their documentation preparation processes by integrating prompts into their software. The appropriate prompts are triggered by each user-generated response to make sure their clients don’t miss anything important. The right platforms are web-based and accessible from nearly any internet-capable device.
Providing Deadline Tracking Features
Having an account with a lien filing platform makes it easy for contractors and suppliers to keep track of upcoming filing deadlines from their dashboards. With the right provider, you can prepare, edit, and approve any document before you pay, track the progress of your mechanic’s lien documents at your convenience, and get live chat support when you need help.
Types of Lien-Related Documents Texas Contractors Can File Online
Texas contractors and suppliers can file several types of lien-related documents online. Although you might initially feel uncomfortable filing against a hiring contractor, property owner, or government agency that fails to honor their contractual obligations, you have the right to hold them accountable for all unpaid invoices and can do so in a professional way. In many cases, a simple notification is all it takes to get the pendulum swinging in your favor.
Related: Will a notice of lien help recover late payment on Texas construction projects?
Along with the advantages of completing the appropriate forms electronically, you may also find it helpful to know that lien filing platforms can do more than simplify the process of filing a lien and managing lien deadlines. They can also help with lien-related services.
Sending a Pre-Lien Notice
Texas law requires sending a pre-lien notice letter to property owners and their general contractors before filing a mechanics lien. This relatively inexpensive document ensures the right people are aware of the unpaid debt. When you send a pre-lien notice, you should get a precise lien affidavit deadline included with your instructions.
Filing a Mechanic’s Lien Affidavit
If you don’t get paid within a few weeks of sending a pre-lien notice, you’ll need to complete and file the mechanic’s lien. These documents ensure all claims of unpaid work become public record. In Texas, anyone filing a mechanic’s lien is paid before other entities if the building is sold in order to recover unpaid debt — provided all essential documents are filed by their deadlines.
Notarization and Document Delivery
All lien affidavits, bond claims (Sworn Statement of Accounts), and lien releases must be notarized before they’re filed. Texas law now allows notarization to be completed electronically. All you need is a digital camera and a valid form of identification for most notarization services. You’ll find the finer points of document delivery and return receipts on your service provider’s website.
Submitting a Lien Release
Once the person or company responsible for paying the money you’re owed satisfies their obligation, you’re required to submit a lien release. The document must then be filed with the county recorder of deeds where the property is located. You must send the lien release no later than ten days after receiving a written request.
File a Mechanics Lien or Bond Claim Online to Protect Your Business More Effectively
Multiple online platforms make it possible to download the documents needed to send pre-lien notices, mechanic’s liens, lien releases, and bond claims. But you’ll probably have to print those documents, fill them out, and have your papers notarized on your own. You’ll also have to make sure every form reaches the right recipients. Filing delays and delivery errors risk invalidating your claim.
Texas Easy Lien is the only company that makes it remarkably easy for contractors, subcontractors, and suppliers to efficiently prepare notices, claims, and releases completely online — and file these documents electronically. With professional documents, contractors can open the lines of communication in a way that protects their rights without souring relationships. For more information about our affordable solutions, submit a contact form or find the button located at the bottom of our contact page to chat with a specialist. With Texas Easy Lien, you’ll have the peace of mind that comes with knowing you’re filing documents and utilizing services developed by Texas lawyers.