Form 7-8

Notice of Claim to Owner and Original Contractor

[Date]

[Name and address of owner]

[Name and address of original contractor]

Re:   Claims of [name of claimant] (“Claimant”) for unpaid billings totaling $[amount] (“Claim Amount”); [specify] construction project (“Project”)

[Salutation]

This is to provide you with notice that Claimant is owed the Claim Amount for its past-due and unpaid billings for [labor/materials/labor and materials] furnished on the Project. Claimant furnished [description of work and/or materials furnished] for the Project under Claimant’s agreement with [name of customer].

This notice is sent in compliance with the Texas Property Code’s mechanic’s lien pro­visions. Accordingly, we must notify you that if the Claim Amount remains unpaid, the owner of the premises may be personally liable, and the owner’s property may be subjected to a lien unless the owner withholds payment from the contractor for payment of the claim or the claim is otherwise paid or settled.

Also, further notice is given that all of the Claim Amount has accrued and is past due. Accordingly, demand for payment of the claim in the Claim Amount is hereby made.

Enclosed are copies of the statements or billings that constitute this claim.

This also constitutes notice pursuant to section 162.001 et seq. of the Texas Property Code (the Trust Fund Act) that Claimant has a priority interest in the construction funds for this project in your possession now or released to you in the future. The Trust Fund Act states that project owners and contractors are trustees of the construction funds they receive. Such funds must be used to pay for the labor and materials on the Project and cannot be used for other purposes. The owner and contractor are deemed to be trustees of the Project funds for the benefit of unpaid subcontractors and suppliers, including Claimant, to see that payment is made. Consequently, you are directed to set aside such construction funds to cover the Claim Amount. Diversion of construction trust funds constitutes violation of the Trust Fund Act.

Please contact me immediately regarding this notice.

Sincerely yours,

   
[Name of attorney]

Certified Mail No. [number]
Return Receipt Requested

Certified Mail No. [number]
Return Receipt Requested