Hahah... That's nuts!
Like I said, when you have a service contract/agreement, the client or customer should be in control- you should be writing the contract. For most people that does not know a thing about service contract, it's a losing battle to begin with because you either use the contractor's wording or you just play it by ears.
In a perfect world, "subcontractor" are not under your control that's the reason why you call them "subcontractor(s)". If you're to manage them or pay them directly, then it's primary contractor. There are rules and exceptions in state or local gov't that may say that subcontractor are allow to sue the client or place a lien.
It's all in the service contract and it can be an art.
It's SOP - in the law. You should read it sometime
"In Texas, mechanics' liens are created by constitutional right and by statute. A Constitutional Lien is available only to contractors in direct contractual privity with the owner for the improvements to the property.
Statutory mechanics' liens may be asserted, similar to other states, by general contractors, subcontractors, materialmen, mechanics, or artisans. A Texas mechanics lien that is filed with regard to work performed on privately owned property attaches to and encumbers the fee simple ownership of the property.
Real estate brokers of commercial property also have Texas mechanics lien rights for unpaid commissions in the state of Texas.
For public projects, a lien against monies due the prime contractor may be filed. The Texas public mechanics lien claim is against monies due, not against the real property or improvements"
"Who can file a Texas mechanics' lien Claim? Contractors, as well as subcontractors, sub-subcontractors and suppliers who have a contract with a general contractor or a subcontractor can file a Texas construction lien. Architects, engineers and surveyors are also entitled to Texas statutory liens so long as their design is utilized in the performance of the construction work."
In simple - you pay the contractor, the contractor skips with the cash, the subs lien your property and you are on the hook. Plenty of sad tales on the webs about this. You can write whatever the hell you like on the contract - bottom line is that if the subs get shorted, the law lets them lien the property.
Also - in Texas and I imagine other places too - the sub can file a Stop Notice with you that says you owe them money. It's your problem because you are financing the project.
See d)
"§ 53.056. DERIVATIVE CLAIMANT: NOTICE TO OWNER OR ORIGINAL CONTRACTOR. (a) Except as provided by Subchapter K, a claimant other than an original contractor must give the notice prescribed by this section for the lien to be valid.
(b) If the lien claim arises from a debt incurred by a subcontractor, the claimant must give to the original contractor written notice of the unpaid balance. The claimant must give the notice not later than the 15th day of the second month following each month in which all or part of the claimant's labor was performed or material delivered. The claimant must give the same notice to the owner or reputed owner and the original contractor not later than the 15th day of the third month following each month in which all or part of the claimant's labor was performed or material or specially fabricated material was delivered.
(c) If the lien claim arises from a debt incurred by the original contractor, the claimant must give notice to the owner or reputed owner, with a copy to the original contractor, in accordance with Subsection (b).
(d) To authorize the owner to withhold funds under Subchapter D, the notice to the owner must state that if the claim remains unpaid, the owner may be personally liable and the owner's property may be subjected to a lien unless:
(1) the owner withholds payments from the contractor for payment of the claim; or
(2) the claim is otherwise paid or settled.
(e) The notice must be sent by registered or certified mail and must be addressed to the owner or reputed owner or the original contractor, as applicable, at his last known business or residence address.
(f) A copy of the statement or billing in the usual and customary form is sufficient as notice under this section."
