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2. Subcontractor has to file a lien affidavit by the 15th day of the 4th month after the last month in which the Subcontractor provides labor or materials. However, if subcontractor's work is performed near the end of a project, shorter deadlines may apply.

In any proceeding to foreclose a lien or to enforce a claim against a bond issued under Subchapter H, I, or J or in any proceeding to declare that any lien or claim is invalid or unenforceable in whole or in part, the court shall award costs and reasonable attorney's fees as are equitable and just.

What Is the Texas Prompt Payment Act? The Texas Prompt Payment Act of 2003 requires insurance companies pay out claims within 60 days of receiving the forms, statements, and anything else required for a claim. The law also provides penalties for companies that provide an on-time payment that is lower than it should be.

Preliminary Notice The notice states that the subcontractor or supplier has provided, or will provide, goods and services to improve your property and could file a lien claim if they are not paid. If subcontractors and suppliers don't provide you with the notice, they lose the right to file a lien.

The Texas Prompt Payment Act is an important legal protection for contractors and subcontractors in Texas. By setting strict payment deadlines and penalties for noncompliance, the law provides a level of security for those who work in the construction industry.

Chapter 2251 of the Texas Government Code outlines the requirements for payment in the state. That law requires that payments be made within 30 days of their due date. One of the most important provisions of the law is that when an insurance company is late with its payment, it must pay interest charges.