Prime Contract, Subcontractor

Perfecting Bond Claims on Public Projects in Texas

Unlike with private commercial projects, liens cannot be filed against public projects in Texas. This means that unpaid subcontractors and suppliers do not have the same protections on public projects as those on private projects. On a private project, a subcontractor or supplier would ordinarily file a lien against the project to secure payment. However, …

Flow-down, Prime Contract, Subcontractor

Subcontractor Negotiating Tips for AIA Documents: Part 1

What should a Subcontractor do when a General Contractor presents, to the Subcontractor, the 401A-2017 Standard Form of Agreement Between Contractor and Subcontractor (“A401”)?  While some provisions in the A401 are favorable to the Subcontractor, others are not.  This multi-part series explores some of the ways a Subcontractor can better: (i) understand its rights and …

Lien, Subcontractor

Back to the Basics: Lien Notice Deadlines for First and Second-Tier Subcontractors

Texas Property Code Section 53.056(a)-(c) details the notice requirement deadlines that subcontractors must comply with to perfect a statutory lien on a private, commercial project in Texas. Simply put, the statute sets forth separate notice deadlines dependent on whether the claimant is a second-tier (and lower) subcontractor[1] or a first-tier subcontractor: Second-tier (and lower) subcontractors …

Flow-down, Liability, Prime Contract, Subcontract, Subcontractor

It’s a Flow-Down, Not a Flow-Up

Subcontracts between a general contractor and subcontractor often contain a flow-down provision stating that the terms and conditions in the owner/contractor agreement (the “Prime Contract”) are also binding on the subcontractor—making the subcontractor obligated to provisions in the Prime Contract—thus begging the question: if the subcontractor is required to assume the general contractor’s obligations, does …