› What is a Pre-lien Notice Letter?

Also known as Pre-Lien Notice, Second Month Notice Letter, Third Month Notice Letter or Notice Letter, a Pre-lien Notice Letter is a notice that Contractors, Subcontractor and Sub-subcontractors and Suppliers are required to send to the construction project owner and general contractor to establish the right to file a lien in the event of non-payment.
The purpose of these notices are to inform the owner that a subcontractor has performed work or supplied materials that have not been paid. By giving notice, the project owner is allowed to retain payment from the general contractor.
These notices are bound by specific deadlines depending on the type of construction project and type of contractor. However, it is recommended that subcontractors send notice as soon as the amount owed is due so the project owner can withhold the debt amount prior to releasing the payment to the general contractor.

Related questions and answers

Is the project owner the same as the property owner?

No, they are not necessarily the same. The project owner is who hired the general contractor and/or subcontractors to perform labor or services to a construction or repair project and whose name is in the contract. This person or entity could be only leasing the property you are working on and not really own it.

Can I file a lawsuit if a bond claim is not paid?

After the claim has been sent to the General Contractor and Bond Company, you cannot file suit on a bond claim for the first sixty days (60). If, however, you are unable to settle your dispute within that time, you must file a lawsuit against the bond before the expiration of one (1) year from the filing date of the bond. If you fail to file suit within this time period, your claim against the bond will expire.

What if I don’t have the bond information?

If the general (prime) contractor did not provide the bond information at the time of entering into the contract, you should request it verbally or on writing as soon as possible. Bond claims and liens have very similar deadlines and requirements having all the necessary information at hand is of utmost importance. If you still don’t get the bond information, in most cases you can get it requesting it to the project owner. If you have the bonding company information but not the bond number, you can still file a bond claim.

Will Texas Easy Lien provide documents for any Public Works Project?

Currently, Texas Easy Lien provides help preparing bond claim documents only for State Public Projects. If you are owed in a construction project that is owned by a Federal Entity, we suggest you immediately consult with your lawyer to assert your rights.

Do I have to file a lien release if I am still owed money on the project?

If you have been paid for the month you filed a lien on a property and you received the request to release the lien, then you should sign a lien release. However, if you are still owed for more months and filed a lien(s) for them as well, those liens should remain in place until the balance gets paid.