Relating to the time period for which certain funds payable under a construction contract must be reserved for the benefit of mechanic's lien claimants.

HB 3290 amends Texas Property Code to extend the time owners must reserve funds for mechanic's lien claimants after construction work is completed. Specifically, owners must keep 10% of the contract price or completed work value reserved for either 31 days after work completion or 61 days after a building receives a certificate of occupancy or is first used - whichever comes first. This applies only to new construction contracts entered into on or after September 1, 2025, affecting property owners and contractors in Texas. The bill does not change the 10% reservation requirement but adjusts the duration for which funds must be held to protect unpaid subcontractors and suppliers.