This notice must be given to the owner by the earlier of the thirtieth day after the date the claimant’s retainage agreement is completed, terminated, or abandoned; or the thirtieth day after the date the original contract is terminated or abandoned. Tex. Prop. Code § 53.057(b). The original contractor also must be sent notice if the claimant’s contract is not with the original contractor. Tex. Prop. Code § 53.057(b–1). Please refer to Texas Property Code section 53.057 for additional requirements for this notice.
Notice of Agreement Providing for Retainage
[Date]
[Name and address of owner]
[Name and address of original contractor]
Re: Notice for Contractual Retainage Claim—[describe in detail the name and location of the construction project] (“Project”)
[Salutation]
[Name of claimant] (“Claimant”), at [address of claimant], is pleased to have been selected as a [subcontractor/supplier] for the Project. Claimant’s contract with [name of contractor], at [address of contractor], provides that [10/[specify other percentage]] percent of the contract price may be withheld as retainage. Claimant therefore respectfully submits its notice of contractual retainage agreement. This notice is required by section 53.057 of the Texas Property Code.
The general nature of the agreement is as follows: [specify, e.g., 10 percent of contract price as adjusted by the change orders].
The date or dates when retainage is payable are as follows: [specify, e.g., thirty days after final completion of our portion of the work on the Project].
We believe the total amount to be retained under our contract will be $[amount]. Also [percent] percent of increases to Claimant’s contract by change order(s) will be subject to retainage.
This notice is not in any way to be considered a negative comment regarding Claimant’s customer, [name of customer], and Claimant looks forward to working toward a successful completion of your Project.
Sincerely yours,
[Name of attorney]
Certified Mail No. [number]
Return Receipt Requested
Certified Mail No. [number]
Return Receipt Requested