M&M Liens

First post.

Probably it ought to be in Spanish. Muchos de mis clientes contratistas son bilingües.

But English is my better language.

So let’s say you got hired to do the HVAC on a job. Someone used a friend’s name to get you onsite. Let’s say they wrote a contract and you signed it. Let’s say they are the GC. let’s say the GC is a little LLC you never heard. Call it, “Trust Me Dumbo, LLC” The time comes for your phase and you get started. Then a draw is delayed. Usually, toward the end. The GC promises you things are fine and says just keep working. Let’s say you do. Let’s say the GC promises you a check later, then strings you out. Let’s say, he does that just until about the 16th day of the fourth month after the last month when you worked on the project. Then let’s say the GC ghosts you. You hear he got paid. Then you get that notice in the mail from the bankruptcy court that “Trust Me Dumbo, LLC” is in bankruptcy.

So, that’s bad. You can sue the LLC for breaching its contract with you but oops, it’s broke.

If you had no contract with the project Owner, you’re dead unless you timely filed a perfect lien claim in the public real estate records. But if you did that, then the building owes you the money for your work. Not by contract. By the law of Texas. You have to prove your case. And the Owner is going to be pissed. Too bad. You did the work, law says you should get paid by the building itself. Even says you can foreclose your lien, if no one pays it after you prove how much they owe you.

In fact, if you did all your paperwork perfect, you have a hook into the GC’s retainage. You get paid a lot faster that way.

Construction. What a tough business. There are at least a couple mid size GCs who have a nasty habit of beating subs out of their retainage. In my opinion.

Sooner you call me, the more options you will have.

(c) Matt Muller 2024.