Texas HB2484 mandates escrow accounts for retainage in construction contracts and imposes penalties for late payments.

Texas HB2484 amends the Business & Commerce Code to introduce a new Chapter 60, titled "Account for Construction Retainage." This bill requires contractors to deposit any retainage, which is money withheld from a payment in a construction contract, into an escrow account. This escrow account provision applies to contracts entered into or renewed after the Act's effective date of September 1, 2025. Contracts entered into before this date remain governed by existing laws.

Texas HB2484 mandates escrow accounts for retainage in construction contracts and imposes penalties for late payments.

Texas HB2484 amends the Business & Commerce Code to introduce a new Chapter 60, titled "Account for Construction Retainage." This bill requires contractors to deposit any retainage, which is money withheld from a payment in a construction contract, into an escrow account. This escrow account provision applies to contracts entered into or renewed after the Act's effective date of September 1, 2025. Contracts entered into before this date remain governed by existing laws.