As Seen in the March issue of Dallas/Fort Worth Contruction News
What Is This?
For a subcontractor, getting paid is the most important part of any job. But how often do you work hard, sell materials, and meet deadlines, only to be short-paid, unfairly back-charged, or worse, not paid at all? What do you do if you are not paid? Show up at the job site and demand payment over and over again? There is a better way.
The following information has been furnished by our counsel. The information provided in this section is for informational purposes only. Notice to Owner, L.L.C. does not assume responsibility for any misuse of the given information.
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THE LAW IS ON YOUR SIDE
You have rights. As a subcontractor, you have the right to get paid for the work you perform or the materials you sell. If the general contractor or the homeowner you contracted with does not pay you, or does not pay you fully, you can still attempt to collect the money that is rightfully owed to you. You can claim a lien on the property that will protect your piece of the selling price of the property.
YOU MUST TAKE ACTION TO PROTECT YOUR RIGHT TO GET PAID
One of the key steps to ensuring you have a valid lien claim is a document telling the owner and the general contractor that they have an unpaid balance. This document is called a “Notice to Owner of Unpaid Balance.” If you have still not been paid after sending this Notice, the next step is to file a Lien Claim.
TIMING IS CRITICAL
Here are some examples of how deadlines for your notices work. The dates below are valid if you are a "sub-sub", where you don’t contract directly with the GC. If you do contract directly with the GC, everything is the same, except the May 15th deadline for the non-residential project is not necessary.
Residential Project
You work or supply materials for a project in the month of March. If you have not been fully paid according to your agreed upon draw schedule, you have to send a “Notice to Owner of Unpaid Balance” to the general contractor and the owner of the property by May 15. If you have still not been paid, the next step is to file an “Affidavit Claiming a Lien”. The Affidavit must be filed with the county clerk of the county where the project is located. This may sound complicated, but that’s why we are here.
Here’s how it works:
- You work or supply materials on any day from March 1 through March 31
- The Notice to Owner of Unpaid Balance must be sent to the GC and the owner no later than May 15
- If you have still not been paid, you must file a Lien Claim Affidavit with the county clerk by June 15
Non-Residential Project
The same basic rules apply, but there is one more step to the process, and the due dates change.
Here’s how it works:
- You work or supply materials on any day from March 1 through March 31
- The Notice to Owner of Unpaid Balance must be sent to the GC no later than May 15
- The same Notice to Owner of Unpaid Balance must be sent to the GC and the owner no later than June 15
- If you have still not been paid, you must file a Lien Claim Affidavit with the county clerk by July 15
IF YOU HAVE MISSED THESE DEADLINES, IT IS STILL NOT A BAD IDEA TO FILE A NOTICE. Only you and your attorney can decide if you would like to do this.
