TX HB2484

Requires contractors to deposit and hold retainage funds in an escrow account when a construction contract includes a retainage provision

Retainage is defined as an amount or agreed percentage withheld from payments to subcontractors until project completion or an agreed-upon date

Escrow account funds must be available to satisfy the contractor's payment obligations to subcontractors

Contractors who fail to pay subcontractors within three months after the subcontractor completes their work become liable for the original amount owed plus a 3% penalty

Applies only to contracts entered into or renewed on or after September 1, 2025