Bill > SB2131

This bill modifies the Texas Property Code by adding a new provision that restricts how funds can be reserved for specially fabricated construction materials. Specifically, the bill prevents owners, contractors, or subcontractors from reserving funds for specially fabricated materials that have already been delivered and accepted at a construction site (either on-site or off-site) and are covered by a manufacturer's warranty. This change aims to clarify and limit the circumstances under which funds can be withheld for construction materials, potentially providing more financial protection for subcontractors. The bill will only apply to original contracts entered into on or after its effective date of September 1, 2025, meaning existing contracts will continue to be governed by the previous version of the law. By adding this subsection to Section 53.101 of the Property Code, the bill seeks to create more transparency and fairness in construction contract fund management.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2131