How can I defend against a mechanic’s lien claim in Texas?

And how can Texas contractors beat defenses to mechanics’ lien claims?

Mechanics’ liens are powerful tools for contractors, subcontractors, and suppliers to protect their payment rights, but they can also create major disruptions for general contractors, developers, owners, and lenders if improperly filed. In Texas, there are several common defenses to lien claims that, when raised early and supported with proper documentation, can stop a lien lawsuit in its tracks.

At Elkhoury Law, I help Houston-area and Texas owners, contractors, and other construction businesses get ahead of lien issues before they escalate into lawsuits or project delays. Below are some common defenses available under Texas law, with commentary on how savvy contractors or suppliers can proactively manage their lien risks through good documentation and construction practices.

Note: this post focuses on statutory mechanics’ liens granted by Chapter 53 of the Texas Property Code. In some instances, general contractors are also entitled to a constitutional lien against the owners’ property. Constitutional liens will be discussed in a future post.

Common Defenses to Texas Mechanics’ Lien Claims

1. Improper Notice or Missed Deadlines

The Texas Property Code requires strict compliance with notice and filing deadlines, and whether the lien claimant is a contractor, subcontractor, or vendor, and whether the claimant is working on a residential or commercial project may impact the deadline. There are separate deadlines for providing notice of a lien and for filing a lien. If a lien claimant misses one or both of these deadlines, it may lose its lien rights entirely.

Contractor Strategy: Build a Notice Calendar from Day One

For every project, create a lien notice schedule at project kickoff, based on the deadlines in the Texas Property Code and your tier in the contracting chain. Use certified mail, return receipt requested for all notices, and keep mailing receipts and delivery confirmations.

If you are unsure about your deadlines or want help tracking them, consider working with a Construction Lawyer in Houston to structure this into your project workflow.

2. Defective Work, Incomplete Work, or Work that was Never Performed

Owners commonly challenge whether the labor or materials claimed under a lien were actually provided, or whether the work was done properly.

Contractor Strategy: Document Everything, and Get Signoffs

Keep daily logs, delivery receipts, progress photos, signed change orders, and emails confirming work performed. For materials, maintain invoices and bills of lading. If the project was delayed or modified, make sure you have backup documentation.

When possible, get written signoffs or punch list acceptances from site supervisors or project managers. If the owner later claims the work was defective, you’ll have a paper trail showing they accepted it. This might not be fool-proof, as defects may be latent, but it will bolster your claim.

3. Waiver

If a subcontractor or vendor provided a mechanic’s lien waiver upon receiving payment from the general contractor, or the general contractor signed a lien waiver upon receiving payment from the Owner, that might be game over. Lien waivers usually waive liens not just for the amounts paid, but also for any other claims related to the work that is paid for. This often means that, by signing a lien waiver, you are giving up your rights to future claims for the same work (e.g., future change orders for the same work, like a cumulative impact change order)—and liens related to those future claims.

Contractor Strategy: Watch What You Sign, and Document Claims Early

If you sign a lien waiver and believe you may have a claim for additional compensation, make sure you both (a) raise that claim under the appropriate methods in your contract, and (b) carve that claim out of your lien waiver. If the owner will not provide payment until you sign a lien waiver that doesn’t have your carveout, it may be time to call a construction lawyer to help you negotiate, escalate, and/or engage in dispute resolution.

Bonus Tip: Don’t Waive Your Lien Rights Too Soon

In Texas, lien waivers are only valid if exchanged for actual payment. But many contractors unknowingly sign away their rights early in pay apps or contract documents. While signing an invalid waiver doesn’t make it valid, it creates a legal quagmire that you should otherwise want to avoid. As a general rule, contractors, subcontractors, and vendors should not sign a conditional waiver unless it is tied to actual receipt of payment, and they should not sign an unconditional waiver unless the check has cleared.

I regularly review and negotiate pay applications, change orders, lien waivers, and other construction agreements to protect your rights. Visit my Construction Law page to learn how I help clients manage their projects from start to finish.

Need Help Defending Against, Filing, or Enforcing a Lien in Texas?

Whether you are an owner working on a new mixed-use development in Midtown, a general contractor building a corporate headquarters in Houston’s Energy Corridor, or a subcontractor working on a new build in Katy, I can help you protect your project, prevent payment disputes, and handle lien claims.

Speak with a Houston Mechanic’s Lien Lawyer Today

Don’t let payment disputes threaten your business. Schedule a consultation with Elkhoury Law to make sure your project is protected from liens, or your lien claims are solid and defensible.