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.

SB 1530 modifies Texas property law to extend the time owners must set aside funds for mechanic's lien claimants. It requires owners to reserve 10% of the contract price or completed work value during construction and for 31 days after project completion, or until 61 days after a certificate of occupancy is issued or the improvement is first used - whichever comes first. This directly affects construction contractors, subcontractors, and suppliers who rely on mechanic's liens to secure payment for work. The change ensures funds remain available longer to resolve payment disputes after projects are finished. The law applies only to contracts signed on or after September 1, 2025.