We recently completed construction of our home, it was 6 months over schedule and we have just been given a change order for $34,000. I discussed paying half the order because it was a result of miss management and contractor error but the contractor informed me that he would not pay any subs that were still owed and to expect liens to be put on the house. I am an architect and I designed the house, I hired my brother- in- law's company, Verde Builders, to build it. I regret that decision daily. The construction administrator over the project was on site may 5 times through out the entire process, hence the over runs on budget and time, lack of coordination of the subs and poor communication between myself and him. I just want to get my $34,000 back, as I feel it was their poor work practices that caused the overages.
You really should retain a construction attorney to review and evaluate your legal position based on the contract and pertinent documents. The right to be entitled to file a mechanic's lien is set out in Texas Property Code Chapter 53, and you really need to make sure that the contractor or its subcontractors have the legal right to file a lien.
If the property is your homestead (meaning that you own the property and live there) then your contract with the contractor would have to satisfy the requirements of Texas Property Code sections 53.254, et seq., which requires specified homestead lien warnings, signing by husband and wife, and recordation in the county property records.
Filing an invalid lien could subject the filier to liability under the Texas Fraudulent Lien Act, and the filer could be liable for statutory damages of $10,000, or actual damages, whichever is greater, plus attorney's fees.
The legal analysis would start with a review of your contract, and then extend to any promotional or advertising or web site representations that the builder made, and then to any communications which have occurred. It could be that the builder has violated the Texas Deceptive Trade Practice Act by making representations which have turned out not to be true or as represented.
It could be that the builder cannot substantiate the amount of the change order charges, or cannot prove that such charges were authorized.
Retain a construction attorney to evaluate your legal position and to provide advice.
Good luck.
Navigating through business related disputes with family members can be extremely challenging. Luckily, as an architect, I am sure you have some professional exposure to the construction industry . Having a competent construction attorney review the contract may provide you with additional insights on, not only the relief you may or may not be entitled to, but what the contractor may expect in a negotiation. In the end, savvy general contractors will not be inclined to get into litigation where a dispute can be reasonably resolved informally. I would recommend you retain an attorney to help work through some of these issues, and put some distance and formality between your family member and yourself. If the general contractor refuses to come to the table, you can consider beginning the pre-suit procedures under the Residential Construction Liability Act, hiring any required experts, and putting the subcontractors on notice that the general contractor has received payment due. If the general contractor failed to direct them appropriately, that is it's responsibility.