Bill > HB3712

This bill modifies regulations regarding retained funds in construction contracts for governmental entities and property owners, specifically addressing how funds can be withheld for specially fabricated materials. The bill amends two sections of Texas law to clarify that governmental entities and property owners are not required to retain funds for specially fabricated materials that have been delivered and accepted by the owner or contractor and are covered by a manufacturer's warranty. Importantly, this provision does not apply to the funds related to the installation of the specially fabricated material by a subcontractor. The changes will only apply to original contracts entered into on or after September 1, 2025, meaning existing contracts will continue to be governed by the previous version of the law. The bill aims to provide more flexibility and financial clarity for contractors and subcontractors by preventing unnecessary fund retention for pre-approved, warranted materials that have already been delivered to a construction site.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3712