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Chapter 21

Form 21-7

This notice is for use on projects in which the original contract was executed before September 1, 2011. This notice must be sent to the owner by the fifteenth day of the second month following the first delivery of materials or performance of labor by the claimant. The original contractor also must be sent notice if the claimant’s contract is not with the original contractor. Tex. Prop. Code § 53.057.

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”) is pleased to have been selected as a [subcontractor/supplier] for the Project. Claimant’s contract with [name] 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