If you are a Texas subcontractor or supplier, you know about the 15th of the month. It’s the time of the month when everyone in your office frantically scrambles to make sure the correct Texas lien notices are going out in the mail. However, with a little planning, much of this frantic running around can be avoided.
Here at zlien, we have a lot of customers in Texas, and they all know about the importance of the 15th of the month. Here are three reasons why the best-run Texas construction companies don’t wait until the last minute to send their notices:
1. THEY COULD MISS THEIR NOTICE DEADLINE
Everyone, both in their business and personal lives, has heard the saying “the check is in the mail.” In the construction industry, collections can be more a game of trust than a game of finance. Customers will tell you that they are paying today, or that the check is already in the mail. However, if it’s already the 15th of the month, and the payment doesn’t come in, and your notice doesn’t go out, then the lien right is gone.
2. THEY DON’T WANT TO WAIT FOR PAYMENT
Everyone involved in Texas construction knows that the 15th of the month is the day for sending notices. Everyone also knows that contractors also want to stretch out their subcontractors and suppliers as long as possible. By sending notices, your customers will know that your company is professional and is prepared to use its mechanics lien right if necessary. This often results in faster payment, and better cash flow for the supplier.
Here are two essential resources for anyone in the construction business in the great state of Texas. The first download is a 1-pager that lists all of the monthly notice deadlines (also called “Fund Trapping Notices”) in Texas, updated for 2018. The second download is another 1-pager that lists all of the lien filing deadlines in Texas, also updated for the 2018 calendar year.
3. THEY WANT TO ENCOURAGE PAYMENT FROM HIGH-RISK CUSTOMERS
Sending notices in Texas not only protects a future lien right, but is also a gesture to show the customer that you are serious about collecting the money that you deserve. For high-risk customers, this can greatly improve your company’s ability to collect, and thus to secure more high-risk business.