Monday, October 1, 2012

Texas Mechanic's and Materialman's Liens and Bond Claims: Contractors and Claimants

The type of contractor or claimant you is an important factor in determining the correct procedures and deadlines in perfecting your lien or bond claim. 

There may be several different types and tiers of contractors involved on one project.  The Owner will contract with one or more General Contractors.  The General Contractors may contract out part of the work to or purchase materials from Subcontractors.  Then the Subcontractors may contract out part of that work to or purchase materials from Sub-Subcontractors.

General Contractor

The General Contractor (also sometimes referred to as the “Prime Contractor” on public works projects) has its contract directly with the Owner of the property.  Remember, if it is a public project, the Owner will be a governmental entity.  The General Contractor may also be referred to as the “Original Contractor” or “Prime Contractor.”  There may be more than one General Contractor.

Subcontractor (First Tier Claimants)

A Subcontractor has its contract with the General Contractor.  Subcontractors are also referred to as “First Tier Claimants.”  It is likely that there will be multiple Subcontractors hired for each project.  For example, the General Contractor may hire Subcontractor X for drywall services and Subcontractor Y for roofing services.

Sub-Subcontractor (Second Tier Claimants)

A Sub-Subcontractor has its contract with a Subcontractor.  Sub-subcontractors are also referred to as “Second Tier Claimants.”  It is likely that there will be multiple Sub-Subcontractors hired for each project as well.  For example, a Subcontractor may hire Sub-Subcontractor A for gutter installation services and Sub-Subcontractor B to supply materials.

By SarahF. Berry, Attorney

If you are interested in attending a lien and bond claim workshop please contact Sarah Berry for more information.  Sarah@LPVLaw.com or (512) 472-2300.  Our next workshop is scheduled for November 2, 2012. 

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