Bill > HB3289

This bill amends Section 28.003 of the Texas Property Code to clarify the definition of a "good faith dispute" in construction contract payments. Specifically, the bill states that a good faith dispute cannot include disagreements about contracts, work orders, or other agreements that are unrelated to the specific construction contract under which payment is being requested or required. This means that parties to a construction contract cannot withhold payment based on disputes stemming from separate contractual arrangements. The changes will only apply to contracts entered into on or after September 1, 2025, providing clarity and potentially reducing payment delays in construction projects by narrowing the circumstances under which payments can be disputed. The bill aims to create more straightforward and predictable payment processes in construction contracts by limiting the scope of what can be considered a legitimate good faith dispute.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3289