Legal Question in Construction Law in Texas

Customer wants to fire me, finish themselves, not pay

I have contracted with a customer to build their house. Right now they live in another home that they own. We did not sign a mechanics lien or ML affidavit. (stupid, I know) The customer witheld money for extra lumber that they thought belonged to them, but that I returned to the lumber company. They deducted 650 for the material that I received only 400 credit for from the lumber supplier. When we argued about this, they went nuts. Now the customer wants to fire me when the job is almost complete, saying that I cannot be trusted. They told me not to set foot back on the property, but refuse to give me written notice. They want to finish the job using their own subs, not mine, even though mine are already involved in the project (elect, plumb, a/c). They say that they do not owe me any money, and that if their subs cost more than mine, that I have to pay. According to my records, it will cost about 40k for the house to be compleded. I still have 68k left to draw, most of it my profit....loss of 28k for me. I have tons of signed contracts and change orders, but just not a mech. lien or affidavit. Is it their homestead yet? can I file a lien? Are they breaking the contract?


Asked on 2/22/05, 2:17 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Customer wants to fire me, finish themselves, not pay

It certainly appears that they're breaking their contract. The property isn't homestead yet, but it is residential construction, and that requires very particular contract language in order to place an M&M lien on the property. If you have that language in your contract, you can place a lien on the property. Otherwise all you can do is sue them for the money they may owe you.

Read more
Answered on 2/22/05, 4:05 pm


Related Questions & Answers

More Construction Law questions and answers in Texas