Texas HB2483 mandates that contractors deposit retainage into an escrow account for construction contracts.

Texas HB2483 amends the Business & Commerce Code to establish a new Chapter 60, titled "Account for Construction Retainage." This law requires contractors to deposit and hold any retainage in an escrow account if the construction contract or related agreements include a retainage provision. Retainage is defined as an amount or agreed percentage of money withheld from a payment in a construction contract between a contractor and a subcontractor, not due until contract completion or an agreed date.

Texas HB2483 mandates that contractors deposit retainage into an escrow account for construction contracts.

Texas HB2483 amends the Business & Commerce Code to establish a new Chapter 60, titled "Account for Construction Retainage." This law requires contractors to deposit and hold any retainage in an escrow account if the construction contract or related agreements include a retainage provision. Retainage is defined as an amount or agreed percentage of money withheld from a payment in a construction contract between a contractor and a subcontractor, not due until contract completion or an agreed date.