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We're sub to a prime contractor and we have provided and paid skilled laborers weekly and owed $243,500

TexasPreliminary Notice

Our company is a sub to a prime contractor and we have provided and paid skilled laborers weekly on pipeline construction and maintenance jobs. Payment is due on or before 45 days from and we have not been paid for nearly 90 days and need to protect our lien rights. What do we do and should we consult with an attorney to make sure we do it correctly, as we are owed $243,500 and will not do any further business with the Prime. Since the Prime is working for major pipeline companies and his contracts may be cancelled for sub lien filings we feel we can get paid quickly with the threat of their clients seeing a notice of intent to lien. I can be reached at 713 824 9393 or email Tim@Linealind. com

2 replies

Aug 25, 2021

The legal analysis would start with a review of your contract, and then extend to the project hierarchy, and to any communications which have occurred. You cannot file a mechanic's lien on public property, but could file a lien against a company's leasehold interest in the pipeline right of way. So, sorting out the interrelationship of the parties with the land is step one.

If you have mechanic's lien rights, you would have to provide the owner with notice by certified mail of non-payment with a funds trapping request by the 15th day of the third month after each month of unpaid work, with a certified copy to the original contractor (the contractor who contracted with the owner).

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

Good luck.

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Sep 3, 2021
You need to provide the owner notice of non-payment by the 15th day of the third calendar month following the month in which the work was performed. Yes you should get an attorney to prepare the notice.
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