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Does the TEXAS RETAINAGE LAW apply to steel manufacturing companies or any other law?


The company that is manufacturing my steel building (not building it just suppling the steel framing) wants paid in full before they will deliver all the steel. Does the Texas retainage law apply to the steel manufacturing company. They are not the contractors just the steel supplier. And we have had problem after problem with things not being correct. Hoping law applies. Thank you Duane

2 replies

Mar 1, 2021
A supplier typically does not have retainage withheld from payments for materials. Retainage is only required for payments by the owner to the original contractor (the contractor who contracted directly with the owner). But the parties are free to negotiate their own provisions which may help ensure quality and performance. Good luck.
Mar 2, 2021

Adding on to Mr. Erikson's answer, if the steel supplier and builder are two different parties, I would suggest that rather than negotiating withholding, you request that your builder to come and inspect the materials when they are delivered and verify to you, preferably in writing, that they are correct. The idea is to shift any responsibility for incorrect materials discovered during construction on to the builder. If your builder balks at this suggestion, at the very least that tells you something about the confidence you should have in that company. If you have not yet contracted with the builder, I would suggest something like this arrangement as an additional term. 

Very best,

Ben House - 281-762-1377 - ben@houseperron.com


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