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Can one file a lien on municipal utility district (MUD) bonded project?

TexasMechanics Lien
Anonymous Contractor

Can one file a lien on municipal utility district (MUD) bonded project if the developer is a private company? Would like to clarify it being a MUD project, if qualified as a public project and so therefore can not file a lien?

4 replies

Partner at Porter Hedges
| 1 reviews
Oct 3, 2022

MUD projects are usually structured such that the MUD is considered to be the owner for all purposes under the contract documents, but the developer is considered the owner for purposes of reviewing pay applications and making payment to the contractor. If the project is structured this way, then the project is usually considered a public project. That being said, every project is different and you should consult with a knowledgeable construction attorney to review your particular circumstances.  

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Attorney at The Erikson Firm, A Professional Corporation
| 149 reviews
Oct 3, 2022

If the project is bonded, then file on the payment bond. Incidentally, if the project is publicly owned, you have no lien rights against public property, and attempting to file a mechanic's lien against public property would not perfect a claim against the payment bond.

Retain a construction attorney to evaluate your legal situation and to provide advice.

Good luck.

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No, you have to file a claim against the bond.
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Attorney at Leake Law
| 10 reviews
Oct 4, 2022
No you file a proof of claim on bond.
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