When working on a construction project, getting paid for completed work is a top priority. However, in Texas, contractors and material suppliers on public works projects cannot place a mechanic’s lien on government-owned property to recover unpaid invoices. Instead, they must pursue a lien bond claim, which provides an alternative legal pathway for securing payment.
A bond claim allows a lien claimant—such as a subcontractor or supplier—to seek compensation directly from the surety company that issued the payment security for the general contractor. Project participants have a powerful collection tool to protect their lien rights without entangling public property in legal disputes.
Understanding how bond claims work and the steps required to file one is essential for those in the construction industry facing non-payment. While a mechanic’s lien bond serves as a form of payment security, it must be pursued correctly and within strict deadlines to remain enforceable. Contractors, suppliers, and subcontractors must know their legal right to file a claim against the bond, what documentation is necessary, and how to navigate the mechanic’s lien process.
In this guide, we’ll break down the key aspects of lien bond claims, including eligibility, deadlines, and best practices for securing the funds you’re owed.
How a Mechanic’s Lien Bond Works for Public Projects
When the owner of a construction project is a governmental agency, such as the state or city government, it’s considered public construction or “public works.” Common examples are schools, sewers, road and bridge construction, universities, government property, public parks, utility work (if publicly owned), and bus stations. In these cases, the general (prime) contractor is required, in most cases, to secure a payment bond before work begins on the project.
The payment bond is secured through a third-party surety or insurer. The payment bond holds that surety company responsible for making sure the subcontractors and materials suppliers working on that project get paid. This way, the government-owned property doesn’t get tied up in legal claims when contractors are seeking payment, such as with mechanic’s liens in private commercial construction. Instead, a subcontractor or materials supplier must file a bond claim against the payment bond to recover payment.
What You Need to File a Lien Claim
Filing a bond claim follows a structured process, much like a mechanic’s lien, requiring adherence to specific guidelines and strict deadlines. Missing even a small detail can delay or invalidate your claim against the bond, so preparation is key. Having the necessary information on hand at the start of a construction project ensures a smoother filing process and increases the likelihood of receiving payment without complications.
Required Project and Contract Information
The following is the information necessary for filing bond claims. We recommend having this information ready and on-hand when you start EVERY public construction project, as it makes the filing process faster and easier when you are prepared.
- Project information: Name and address of the project. A legal description can be used, but it’s not necessary.
- Contract: Name (or company name) and mailing address of the General (Prime) Contractor, the amount owed, retain-age amount, and type of agreement (written or oral).
- Bonding company (surety): Company name, address, and bond number (you can still file if you are missing the bond number, but you must have the surety company name and address.
- Work: Invoices, description of the unpaid work performed, and the amount owed for each month (individually).
By ensuring this information is readily available, you can file your lien claim efficiently and avoid delays in securing the payment you’re owed.
Surety Bond Details and Filing Deadlines
Just like a mechanic’s lien bond, there are deadlines you need to know. Subcontractors with a direct contract with the general contractor must send a bond claim notice, along with a notarized sworn statement of account, to both the general contractor and surety company no later than the 15th day of the third month after the work was performed. If you don’t have a direct contract with the general contractor, additional notice requirements may apply.
Failing to meet these deadlines can result in losing your legal right to collect on a valid claim, so it’s important to follow the correct procedures. If you need a detailed breakdown of filing requirements, consulting a trusted lien bond resource is a best practice to ensure compliance with Texas law.
After Filing a Surety Bond Claim
Filing a surety bond claim is a powerful step in securing payment for unpaid work, but it’s not always the final step. In many cases, submitting a bond claim prompts a swift resolution, as general contractors and surety companies aim to avoid legal action. However, if non-payment persists, further action may be necessary.
Once a lien claimant files a bond claim, the surety company will review the details and may request additional documentation to verify the valid claim. The company will then assess whether the general contractor or other parties involved have met their obligations under the contract. If the surety company determines that the claim is valid, they’ll release the appropriate funds to settle the dispute. This process typically takes a few weeks to a few months, depending on the complexity of the case.
If payment is not received within 60 days of filing the claim, the next step is legal action. Claimants have a legal right to file a lawsuit against the bond to enforce payment security. Under Texas law, this lawsuit must be filed within one (1) year from the date the bond claim notice was submitted. Missing this deadline results in forfeiting the lien rights, leaving no further legal recourse for collecting funds.
To strengthen your case, follow the best practice of maintaining detailed records of all contracts, invoices, correspondence, and project details related to the construction project. A well-documented claim against the bond increases the likelihood of a favorable resolution, whether through direct payment from the surety company or a legal judgment in court.
While filing a surety bond claim offers temporary relief and a structured path to receiving payment, understanding the full process ensures that claimants can take the necessary steps to protect their lien rights and recover the money they are owed.
Maximizing Your Payment Security with Lien Filing Services
Navigating the mechanic’s lien process and filing a bond claim can be complex, requiring strict adherence to deadlines, legal requirements, and detailed documentation. For many contractors, subcontractors, and material suppliers, handling this process alone can be time-consuming and overwhelming—especially when trying to recover payment while managing ongoing construction projects. This is where professional lien filing services become an invaluable resource.
Streamlined Filing Services
A reliable lien bond filing service streamlines the entire process, ensuring that every claim against the bond meets Texas legal requirements. These services provide step-by-step guidance, helping lien claimants gather the correct documentation, track filing deadlines, and submit claims accurately. By leveraging an online lien filing platform, contractors can avoid costly mistakes that could jeopardize their lien rights or delay payment.
Valuable Time Savings
In addition to accuracy, professional lien services save valuable time. Instead of researching legal statutes, preparing documents, and handling notarization, claimants can rely on a trusted platform that simplifies the process. They can focus on their work while ensuring their legal rights are protected. Whether dealing with a mechanic’s lien bond, a lien release bond, or another surety bond issue, having access to an efficient filing system provides peace of mind and increases the likelihood of receiving payment without unnecessary disputes.
When payment security is at risk, using a lien filing service is a best practice that helps claimants take swift, effective action. By ensuring compliance with Texas law and eliminating guesswork, these services empower professionals in the construction industry to confidently assert their rights and secure the funds they’ve earned.
Ready to File Your Mechanic’s Lien Bond?
Filing a bond claim protects contractors, subcontractors, and material suppliers’ payment security on public construction projects. Since a mechanic’s lien bond cannot be placed on public property, pursuing a claim against the bond ensures that unpaid parties have a legal path to receive payment. However, the process requires strict adherence to deadlines, thorough documentation, and an understanding of Texas lien laws to successfully enforce lien rights.
Texas Easy Lien simplifies the process. With an intuitive online platform, we provide a seamless way to prepare, notarize, and file lien bond claims efficiently—without the need for expensive attorneys or lengthy legal research. Our system ensures that every bond claim meets Texas filing requirements, reducing errors and increasing the chances of a successful claim. Contractors can quickly generate the necessary documents, track important deadlines, and take action before losing their legal right to enforce a valid claim.
Don’t risk missing a deadline or filing incorrectly—get started with Texas Easy Lien today and take control of your payment security with a fast, affordable, and legally compliant filing solution.
Please note that these rules only apply to domestic government projects in the State of Texas and do NOT apply to federal construction projects such as at places like Ft. Hood.
