Typically, most states have a method for subcontractors and suppliers to receive notification that the original contract for which their contract falls under is terminated or abandoned. If you receive one of these notices and have an unpaid claim, it is possible that your lien notices and affidavit deadlines might be altered, or even accelerated.

Kelly Davis, Esq.
Few construction lawyers have the first-hand experience to understand fully the complex issues that their clients face. When Kelly Davis was a child, her father started a small residential construction business, and there began Kelly’s love of construction. She was the little girl that would be running all around the construction projects. Over the years, her father’s business grew into developing commercial buildings, and high-end residential homes. As a result, Kelly has grown up, worked in and lived around the construction industry her entire life.

In this CLE class clip, Kelly discusses the notice of termination or abandonment in construction law.

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If you happen to be the owner, you will need to determine your state’s requirements, if your contract with your general contractor has been terminated, or abandoned. In Texas for example, the owner’s notice of termination or abandonment must contain the following information:

• The name and address of the owner
• The name and address of the original contractor
  a description, legally sufficient for identification, of the real property on which the improvements are located
• A general description of the improvements agreed to be furnished under the original contract
• A statement that the original contract has been terminated or that performance under the contract has been abandoned
• The date of the termination or abandonment
• A conspicuous statement that a claimant may not have a lien on the retained funds unless the claimant files an affidavit claiming a lien not later than the 40th day after the date of the termination or abandonment

It is very important to know what the notice is to contain in your specific area, as if you don’t have the correct notice of termination or abandonment, it does affect the lien right.