Lovein Ribman Texas Construction Law

Texas Construction Attorneys

What is a Notice of Claim (Pre-Lien Notice or Intent to Lien Notice) Demand Letter?

Any Claimant not hired directly by the Property Owner or a commercial Tenant is required to timely serve a Notice of Claim to the Property Owner and the General Contractor before recording a Lien against the Property. The minimum statutory requirements for a valid Notice of Claim are basic, e.g., the Claimant’s name, address, and telephone number; the amount owed; the months the unpaid work was provided; and a brief statutory notice. However, a Notice of Claim should do more than just satisfy the minimum statutory requirements; it should seek to resolve the dispute in order to avoid having to record a Lien or file a lawsuit. One potential way to satisfy this goal, is to draft the Notice of Claim in the form of a Payment Demand Letter and include a summary of the relevant facts concerning the work performed and non-payment, citation to any relevant Contract provisions, and reference and application of the Prompt Payment Act, the Trust Fund Statute, and reimbursement of attorneys’ fees under CPRC Section 38.