Texas House Bill HB1390

Texas 2011 - 82nd Regular

• Introduced: 2/16/11
• Out of House Committee: 4/1/11
• Voted on by House: 5/3/11
• Refer: 3/1/11
• Out of Senate Committee: 5/10/11
• Report Pass: 3/30/11
• Voted on by Senate: 5/16/11
• Engrossed: 5/3/11
• Governor Action: 6/17/11
• Refer: 5/4/11
• Report Pass: 5/10/11
• Enrolled: 5/18/11
• Passed: 6/17/11

Caption

Relating to retainage under certain construction contracts.

Impact

The bill amends several sections of the Property Code to establish clearer guidelines about notification of retainage agreements and the obligations of different parties involved in construction contracts. Notably, it specifies how retainage claims can be perfected, thereby reducing ambiguity and potential disputes that may arise in the construction process. By clarifying these procedures, the bill is expected to provide better protection for subcontractors and suppliers by ensuring they receive timely payment for their services while also enabling property owners and contractors to adhere to established notification protocols.

Summary

House Bill 1390 focuses on the issue of retainage within construction contracts, specifically addressing the rights and responsibilities related to retainage in the construction industry. The bill proposes amendments to the Property Code in Texas, aimed at refining the existing legislative framework regarding retainage, which is the practice of withholding a portion of payment to ensure the completion of work. The changes are intended to streamline the claims process and clarify notification requirements between owners, contractors, and subcontractors, thus enhancing the efficiency of retaining funds and claims related to construction projects.

Contention

There may be notable points of contention surrounding HB 1390. Stakeholders from the construction industry may have differing views on the impact of these amendments. Some contractors may argue that the refined notification processes impose additional administrative burdens, while subcontractors may support the bill as it promotes timely payments and protects their interests. The discussions within the legislative committees might reflect concerns over balancing the interests of various parties in construction contracts, particularly around enforceability and liability concerning retainage.

Last_action

06/17/2011 E Effective on 9/1/11