Public Construction Projects and Payment Bond Claims
You cannot file a mechanic’s lien on a public project. Government property cannot be liened, and attempting to file one will not protect your rights.
What you can do, and what you must do, is make a claim on the payment bond.
Payment Bonds on Public Projects
Texas law requires that virtually all public construction contracts carry a payment bond before any work begins. The bond is posted by the general contractor and backed by a surety company. If the contractor fails to pay its subcontractors, laborers, and materialmen, those parties can make a direct claim against the bond fund.
This is the mechanism that protects you on a public job instead of the lien.
The requirement applies to most government projects. The covered entities include the state of Texas and its agencies, counties, cities and municipalities, school districts, water districts, and most other political subdivisions. If the entity is a government body of any kind and the contract is large enough to require a bond, the bond should be there.
If you are unsure whether a bond was posted on your public project, you can ask the government agency directly or request a copy of the bond. If the bond was required and was not posted, that is a problem for the GC, but it does not necessarily eliminate all of your rights. Contact us to work through the options.
Notice Requirements for Public Project Bond Claims
Making a bond claim on a public project is not as simple as writing a letter to the surety. There are specific notice requirements and deadlines that must be followed, and like lien deadlines, missing them can permanently end your ability to collect.
You must give written notice to the general contractor within a specified period after the last date you furnished labor or materials. This notice must be sent by certified mail. You must then make a formal claim against the bond within a further specified period. These deadlines are strict and the consequences of missing them are the same as missing a lien deadline: your claim is gone.
We will not attempt to state the exact time periods here because they depend on the specific type of public project and the terms of the bond. What we will say is that the moment you realize you are not going to be paid on a public job, contact us. Do not wait to see if the GC comes through. The notice clocks are running from the moment your last payment was due.
Public Projects in the Dallas-Fort Worth Area
DFW-area contractors work on a wide variety of public projects: TXDOT highway and infrastructure work, DISD and other school district construction, Dallas Area Rapid Transit projects, City of Dallas and City of Fort Worth facilities, Dallas County and Tarrant County courthouse and office projects, University of Texas System and other university construction, and water and utility district infrastructure projects.
These are public projects that require payment bonds and involve a different collection process than private work. We represent subcontractors, materialmen, and laborers on public projects throughout the DFW area. If you have been working on a government project and have not been paid, call us as soon as the problem starts.
The General Contractor’s Perspective
We also represent general contractors on public projects who are dealing with bond claims filed against them by subcontractors. If a bond claim has been filed against your company on a public project, whether or not you believe it is valid, contact us. A bond claim that proceeds to a judgment against the surety has consequences for the general contractor’s bonding capacity and future ability to obtain bonds. These situations need to be handled carefully and promptly.
Frequently Asked Questions
Can I file a mechanic's lien on a school or government building in Texas?
No. Government-owned property, including school buildings, courthouses, city facilities, highways, and other public improvements, cannot be liened. The exclusive remedy for unpaid subcontractors and materialmen on public projects is a claim against the payment bond that the general contractor is required to post before work begins.
I did work for a school district and the GC won't pay me. What do I do?
You are on a public project, which means a payment bond was almost certainly required by law. The notice requirements and deadlines for a public bond claim are strict and begin running from the time your last payment was due. Contact us immediately. Do not wait to see if the GC resolves the issue.
Does the GC have to post a bond on every government project in Texas?
For most government contracts above a minimum dollar threshold, yes. Payment bonds are required by law on public contracts to protect subcontractors, materialmen, and laborers who perform work on government projects. If you are on a public project and believe no bond was posted, contact us. Failing to post a required bond is a serious problem for the GC.