Retainage is the money held back from each payment until the job is done, often 5% to 10%. It's also the money subs are most likely to never see, because the job is over, the GC has moved on, and nobody sent the right notice.
Quick answer: If your retainage claim isn't already covered by a regular notice of claim, send a retainage notice to the owner and original contractor by the earlier of 30 days after your contract ends or 30 days after the original contract is terminated or abandoned. Then file the lien affidavit by the 15th day of the 3rd month after the month the original contract was completed, terminated or abandoned (Tex. Prop. Code § 53.052(d)).
The owner's 10% statutory retainage
Texas requires owners to hold back 10% of the contract price (or the value of the work) for 30 days after the work is completed. That fund exists to protect subs and suppliers who properly perfect their claims. If the owner fails to hold it, the owner can be personally liable to claimants up to that amount.
The retainage notice
For contracts signed on or after January 1, 2022, a claimant owed retainage sends a notice to the owner and the original contractor by the earlier of:
- the 30th day after the claimant's own contract is completed, terminated or abandoned, or
- the 30th day after the original contract is terminated or abandoned.
The notice states the project, the type of work, who you contracted with and the total unpaid retainage. You can attach an invoice.
Filing the lien affidavit
After sending the notice, file the lien affidavit by the 15th day of the 3rd month after the month the original contract was completed, terminated or abandoned (§ 53.052(d)), and send a copy to the owner and original contractor within 5 days after filing (§ 53.055).
Watch for an affidavit of completion
Owners can file an affidavit of completion when the job is done. Keep an eye on the county records near the end of a project, and ask the GC when the original contract is expected to be completed.
When retainage still isn't paid
If the deadline passed, the GC still owes you the retainage under your subcontract. We collect on contingency, 10% to 33%, nothing if we don't collect.
Read the full Texas lien deadline guide →
Frequently asked questions
What is the deadline for a retainage claim in Texas?
Send the retainage notice by the earlier of 30 days after your contract ends or 30 days after the original contract is terminated or abandoned, then file the lien affidavit by the 15th day of the 3rd month after the month the original contract was completed, terminated or abandoned.
Does the owner have to hold retainage in Texas?
Yes. Owners must hold 10% of the contract price for 30 days after completion to protect subs and suppliers who perfect their claims.
Can I still collect retainage after the deadline?
Your lien rights may be gone, but the party that hired you still owes the retainage under your contract.
This article is general information, not legal advice. LevelSet Collections is not a law firm. If your situation needs legal advice or a lawsuit, talk to an attorney licensed in your state.
Owed money on a job?
Liens from $199. Collections on contingency, no collection, no charge.
