Relating to funds reserved or retained for certain construction materials.

HB 3712 prevents owners, contractors, and subcontractors from reserving funds for custom-made construction materials that have already been delivered, accepted, and covered by a manufacturer's warranty. The bill amends Texas Property Code to prohibit holding funds for such materials once they are delivered and under warranty, ensuring funds aren't unnecessarily retained. This applies only to new construction contracts signed on or after September 1, 2025, leaving existing contracts unaffected. The change aims to streamline fund management for construction projects by eliminating redundant financial holds.