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Bill Detail: HB21-1167

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Title Private Construction Contract Payments
Status Governor Signed (05/17/2021)
Bill Subjects
  • Business & Economic Development
  • Housing
House Sponsors M. Duran (D)
P. Will (R)
Senate Sponsors R. Scott (R)
J. Gonzales (D)
House Committee Business Affairs and Labor
Senate Committee Business, Labor and Technology
Date Introduced 03/04/2021

The bill prohibits a property owner from withholding from a
contractor more than 5% of the price of completed work to ensure the
work is satisfactorily completed. The contractor and subcontractors are
also prohibited from withholding more than 5% from subcontractors and
suppliers. The bill also clarifies that these prohibitions do not apply to
other types of contractual conditions made before payment is due.

The contract may require lien waivers to be executed before
payment is made.
The bill applies to:
  • A contract that has a price of at least $150,000; and
  • A subcontract or supply agreement to such a contract.
The bill does not apply to a single contract that governs:
  • The building of:
  • A single-family dwelling;
  • A multifamily dwelling with 4 or fewer family
dwelling units; or
  • A contract with a public entity.

Committee Reports
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Fiscal Notes Fiscal Notes (08/05/2021) (most recent)  
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