Texas Lien Waivers & Pay-App Requirements for Commercial Subcontractors

Texas commercial subcontractors operate under Texas Property Code Chapter 53 (Mechanic's, Contractor's, or Materialman's Lien). Texas has statutory waiver forms in §53.284, a preliminary notice regime that's stricter than California's, and the Texas Construction Trust Fund Act (Chapter 162) — which creates fiduciary duties on owners and primes with respect to construction payments.

This page covers the four statutory waiver types, the preliminary notice deadlines that catch most subs, retainage law, lien deadlines, and the Construction Trust Fund Act exposure that matters when a payment dispute escalates.

This page is informational, not legal advice. For waiver execution decisions and lien filings, consult a construction attorney licensed in Texas.

Statute & form reference

Texas Property Code §53.284 provides four statutory waiver forms, parallel to California's structure:

• §53.284(b) — Conditional Waiver and Release on Progress

Payment.

• §53.284(c) — Unconditional Waiver and Release on Progress

Payment.

• §53.284(d) — Conditional Waiver and Release on Final

Payment.

• §53.284(e) — Unconditional Waiver and Release on Final

Payment.

Texas requires substantially the form prescribed by §53.284. Like California, deviations from the statutory language create enforceability risk. Unlike California, Texas's statutory forms are slightly more permissive in their boilerplate — but the core release language must match.

The four waiver types

Conditional Waiver on Progress Payment (§53.284(b))

Releases lien rights for labor and materials covered by a specific progress payment, conditioned on the check actually clearing. Standard for monthly commercial pay-app packets.

Unconditional Waiver on Progress Payment (§53.284(c))

Releases lien rights for the prior progress payment, absolutely, without payment condition. Sign only after the corresponding check has cleared.

Conditional Waiver on Final Payment (§53.284(d))

Final-payment version of (b). Conditioned on final-payment clearing.

Unconditional Waiver on Final Payment (§53.284(e))

Final-payment version of (c). Absolute. Sign only after final payment + retainage release have cleared.

Down-to date and signer

Texas waivers must include the date through which the waiver is effective (the "through" date) and the signer's authority to bind the claimant entity. Officer or designated signer with documented authority. Estimator and PM titles risk challenge.

Preliminary notice — the hardest Texas rule for new subs

Texas has one of the strictest preliminary-notice regimes in the United States. Subs working a Texas commercial job must serve notice on the owner and the original contractor by specific deadlines tied to the month delivery occurs.

For commercial work (non-residential, non-homestead), the deadline structure under Tex. Prop. Code §53.056:

• Notice to owner and original contractor: by the **15th day

of the 3rd month** after each month in which the labor was performed or material delivered (for second-tier subs); 15th day of 2nd month for original contractors.

• Trapping notice (if needed): by the 15th day of the 2nd

month following.

• Special notice for residential homestead: different,

earlier deadlines apply.

Missing the preliminary notice deadline means losing lien rights for that period of work. This is the #1 reason new-to-Texas subs lose lien remedies on disputed payments.

SubCash tracks Texas preliminary notice deadlines per project per delivery month and alerts before the cutoff.

Retainage law

Tex. Prop. Code §53.101 requires the owner to retain 10% of the contract price for 30 days after completion of the work. The retained funds are subject to claims of subs who have filed lien affidavits.

Practical effect: subs with valid liens on a Texas commercial job have a statutory claim against the 10% retained fund — a meaningful collection mechanism if the owner or prime defaults.

Lien deadlines

For commercial work (non-residential):

• Lien affidavit filing: by the 15th day of the 4th month

after termination of the original contract (or after the work is completed, terminated, or abandoned). Tex. Prop. Code §53.052.

• Suit on lien: within 2 years of the lien affidavit

filing or contract completion (whichever is later). Tex. Prop. Code §53.158.

These deadlines are bright-line. SubCash tracks lien deadlines per project and alerts at 30/14/7 days before each cutoff.

Texas Construction Trust Fund Act (Chapter 162)

Texas is one of the few states with a statutory construction trust fund regime. Under Tex. Prop. Code Ch. 162, payments received by a contractor for work performed on a construction project are held in trust for the benefit of subcontractors, laborers, and material suppliers.

Misapplication of trust funds (paying personal expenses, paying unrelated company debts, etc., before paying down-tier subs) creates personal liability on the trustee — and is a felony in some cases.

Practical effect: subs with unpaid claims on a Texas commercial job have not just lien remedies but also a Trust Fund Act claim against the contractor's principals. This is unusually strong leverage for a sub in a payment dispute.

SubCash doesn't pursue Trust Fund claims for customers — that's construction litigation work — but we surface the exposure on short-pays and unpaid balances so customers can route the remedy with their attorney.

Public works in Texas

Federal projects in Texas trigger Davis-Bacon WH-347 weekly reporting. State public-works projects (Texas Department of Transportation, state university systems, school districts) have state-specific prevailing wage and reporting requirements that vary by awarding body.

There is no single Texas state portal equivalent to California's DIR eCPR. Most Texas public-works subs report through the awarding body's specific portal or a contracted compliance service.

Free Texas Lien Waiver Generator

Generate a statutory Texas waiver in 30 seconds. 4 form types (§53.284(b), (c), (d), (e)). 6 input fields. Free, no sign-up.

Get a $99 Cash-at-Risk Audit on your Texas packets

If you bill commercial GCs in Texas monthly, the Texas-specific issues above (preliminary notice timing, statutory waiver form compliance, retainage tracking, Trust Fund Act exposure on short-pays) almost certainly appear in your billing workflow. The $99 audit finds them.

5 business days. Refund if we don't find at least $10K of cash at risk or 5+ hours/month of recoverable admin time.

FAQ

Q: Does Texas require a specific lien waiver form? A: Yes. Tex. Prop. Code §53.284 provides four statutory waiver forms (conditional/unconditional × progress/final). Texas requires substantially the form prescribed by §53.284.

Q: What's the preliminary notice deadline for a Texas commercial sub? A: For second-tier subs on commercial work: by the 15th day of the 3rd month after each month in which labor was performed or material delivered. Original contractors: 15th day of 2nd month. Tex. Prop. Code §53.056. Missing the deadline forfeits lien rights for that period.

Q: What's Texas's retainage law? A: 10% of the contract price retained for 30 days after completion, subject to claims of subs with filed lien affidavits. Tex. Prop. Code §53.101.

Q: What's the Texas Construction Trust Fund Act? A: Tex. Prop. Code Ch. 162 — payments received by a contractor for construction work are held in trust for downstream subs, laborers, and suppliers. Misapplication creates personal liability on the trustee. Significant leverage for subs in a payment dispute.

Q: How long does a Texas commercial sub have to file a lien affidavit? A: By the 15th day of the 4th month after termination of the original contract or completion of the work. Tex. Prop. Code §53.052. Suit on lien within 2 years of filing.

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*This page is informational. SubCash is not legal advice. For waiver execution decisions and lien filings, consult a construction attorney licensed in Texas.*