Home>Payment Q&As>Can the homeowner party to a residential construction contract legally waive the requirement to hold back 10% statutory

Can the homeowner party to a residential construction contract legally waive the requirement to hold back 10% statutory

TexasRetainage

Can the homeowner party to a private residential construction contract legally waive the requirement to hold back 10% statutory retainage requirement?

1 reply

Dec 12, 2019
Nothing in the Texas Property Code's provisions on retainage seem to allow an owner to contract out of the retainage requirements created at § 53-101. Note, though, that an owner can technically refuse to follow retainage requirements - it will just open them up to greater liability on the job - and the Texas Property Code actually plans for that possibility. Under § 53-105(a), an owner who fails or refuses to withhold the statutory 10% retainage will be subject to mechanics liens at least to the extent that they failed to retain funds. Otherwise, a subcontractor's lien claim would be limited to a greater degree. For futher discussion on Texas' retainage laws: Texas Retainage Guide and FAQs.
0 likes

Add your answer or comment

Not the answer you were looking for? Check out other Retainage topics or ask your own question