Three significant changes to Texas construction law took effect in 2025 and now govern every construction contract signed since those dates. The Texas Legislative Update published by Peck Law Group summarizes the key provisions across HB 2960, HB 3005, and SB 929. Contractors who have not reviewed contracts signed since mid-2025 against these changes may be carrying exposure they are not aware of.
The most broadly applicable change is HB 2960, which took effect September 1, 2025. It amends the Texas Business and Commerce Code to void any clause in a construction contract that requires litigation or arbitration outside of Texas or subjects the contract to the law of another state. Under this statute, unless the parties agree otherwise after a dispute arises, any action on a Texas construction contract must be filed in the county where the property is located. For Texas contractors who have signed agreements with out-of-state developers or national general contractors using standard form contracts with out-of-state venue clauses, those clauses are now void under Texas law regardless of what the contract says.
“HB 2960, effective September 1, 2025, voids any clause in a construction contract requiring litigation or arbitration outside of Texas. The bill mandates that construction contract disputes on real property located in Texas must be brought in Texas.”
Source: Peck Law Group, Texas Legislative Update, August 2025 · pecklaw.com
HB 3005, also effective September 1, 2025, clarifies what constitutes a bona fide dispute under public works prompt pay requirements. Under the new language, an audit of a public works project that extends more than 60 days past substantial completion does not qualify as a bona fide dispute for purposes of withholding payment. This gives contractors on public jobs additional protection against delayed payment justified by extended post-completion audits.
SB 929 took effect May 21, 2025, and amended the Texas Property Code to extend lien notice deadlines that fall on weekends or holidays to the next business day. Texas lien law has historically applied statutory deadlines without exception for non-business days, and courts have enforced those deadlines strictly. This change aligns Texas lien law with general statutory construction principles and reduces the risk of a missed lien deadline due to a calendar overlap.
None of these changes require immediate action on existing projects. But contractors reviewing contract templates, negotiating new agreements, or operating on public works jobs should confirm their documents and procedures reflect the current statutory framework. The Texas Construction News noted this month that the legal landscape for Texas contractors is actively shifting, and reviewing contract forms against recent statutory amendments is worth the time before the next significant job is signed.
Three Texas construction laws changed in 2025. If you signed contracts after September 1, reviewing them against the new venue, prompt pay, and lien rules is worth the conversation with your legal counsel before the next project starts.