Bill > HB2484

This bill establishes new regulations for construction retainage, which is a portion of money withheld from a contractor's payment until a construction project is completed. The bill requires contractors to deposit retainage funds into an escrow account, ensuring the funds are available to pay subcontractors. If a contractor fails to pay a subcontractor within three months after the subcontractor completes their contractual obligations, the contractor becomes liable for the original obligation plus an additional 3% penalty. The definitions clarify that a "construction contract" follows the meaning established in another section of Texas law, and "retainage" refers to the percentage of money withheld during a construction project. These new regulations will apply only to contracts entered into or renewed on or after September 1, 2025, meaning existing contracts will continue to be governed by previous laws. The bill aims to provide more financial protection and clarity for subcontractors in construction projects by mandating a transparent escrow account system and introducing financial consequences for late payments.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2484