TX HB3712

Prohibits governmental entities from withholding retainage on specially fabricated construction materials that have been delivered and accepted (on-site or off-site) by a subcontractor, provided the materials are covered by a manufacturer's warranty with the governmental entity or assigned to them by the prime contractor

Exempts the value of installation labor from the retainage prohibition—retainage may still be withheld for the subcontractor's installation work on specially fabricated materials

Amends Property Code to relieve property owners from the standard 10% retainage reserve requirement for specially fabricated materials that have been delivered, accepted, and are covered by a manufacturer's warranty

Applies only to original contracts entered into on or after September 1, 2025; contracts executed before that date remain subject to prior law