H.B. No. 3712 amends Section 53.101 of the Property Code to introduce new regulations regarding the reservation of funds for specially fabricated materials in construction contracts. The bill specifies that an owner, contractor, or subcontractor is prohibited from reserving funds for such materials unless they have been delivered and accepted at the site or off-site, and are covered by a manufacturer's warranty under a contract with the relevant parties. This addition aims to clarify the conditions under which funds can be reserved, ensuring that only materials that meet these criteria are eligible.

The provisions of this bill will apply only to original contracts entered into on or after its effective date of September 1, 2025. Contracts established before this date will continue to be governed by the previous law, ensuring a smooth transition and maintaining the legal framework for existing agreements.

Statutes affected:
Introduced: Property Code 53.101 (Property Code 53)