The Rules for Original Contractors.

An original contractor is entitled to a lien for work done or material furnished.  A contractor who furnished materials and labor for a construction project is entitled to a lien for labor, notwithstanding that the actual performance of the work was done by his or her employees.  A contractor, however, is not entitled to a lien for material and labor that he or she should have furnished under the contract where such materials and labor were actually furnished by others. 

The rights of a contractor can rise no higher than those of the person with whom he or she has contracted. Thus, for example, a contract with a lessee cannot give a contractor any rights against the lessor or the lessor's title to the realty. 

On any work, there may be more than one original contractor for purposes of the provisions of the Property Code governing mechanic's and materialman's liens.

Caution: An original contractor may not require an owner of real property to convey the real property to the original contractor or to an entity controlled by the original contractor as a condition to the performance of the residential construction contract for improvements to the real property. 

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