Texas law requires subcontractors and suppliers to send monthly notices throughout a construction project (and for several months after completion) to ensure transparency, secure payment rights, and keep projects well-documented for all parties.
Owners and general contractors should expect to receive these “Notice of Claim” or “Monthly Notice” documents via certified mail as a standard part of the Texas construction process, and not as any indication of trouble or dispute.
What is a Monthly Notice?
Under Texas Property Code Chapter 53, subcontractors and suppliers must send these notices to preserve their right to file a lien if an invoice is ultimately not resolved.
- It is a Status Update: It confirms that work was performed in a previous month and that the invoice is still working its way through the contracting chain.
- It is NOT a Lien: No legal claim has been filed against the property title.
- It is Mandatory & Recurring: Many companies send these automatically every month. Because missing a single deadline can cause a subcontractor to lose their legal rights, they send them as a matter of routine, even when payment is moving normally.
Why Both Parties Receive Them
Texas law requires these notices to be sent to both the Property Owner and the General Contractor (GC).
- For the Owner: It provides visibility into the “sub-tier” (suppliers and vendors) who are working on your property, even if you don’t have a direct contract with them.
- For the GC: It acts as a tracking mechanism to ensure that your first-tier subcontractors are correctly paying their own suppliers.
The Timeline: Why Notices Arrive “Late”
Notices do not arrive the day work is done; they follow a specific statutory lag. You should expect them on the following schedule:
- Commercial projects: by the 15th day of the third month after the work was done.
- Residential projects: by the 15th day of the second month after the work was done.
Note: Because of this lag, you may receive notices for “January work” in March or April. Additionally, a separate Notice of Claim for Unpaid Retainage may arrive near the end of the project to protect funds withheld under the contract.
4. Action Plan: What to Do Next
Texas law does not require you to respond, sign the document, or take any legal action upon receiving a notice. However, to ensure the project stays on track, we recommend the following internal steps.
Match the notice against your project records for that specific billing month, then:
If you are the Project Owner:
- Forward to your GC: Send a copy to your General Contractor immediately. They will verify whether the invoice is paid or scheduled for payment.
- Keep a copy on file: Retain the notice as part of your project’s permanent record of who worked on the site.
If you are the General Contractor:
- Check payment status: Look up the payment status for that billing period against your records.
- Confirm sub-tier payment: If the first-tier subcontractor has been paid, reach out to confirm they have paid the specific claimant (supplier or vendor) listed on the notice.
If Something Looks Incorrect
If the dollar amount or project address on the notice appears wrong, contact the company listed on the notice or your primary project manager to reconcile the records.
The vast majority of Texas projects generate a number of these notices without any leading to a lien. They are simply the paper trail that ensures a smooth, lien-free closing.