Bill > SB1614

This bill modifies Section 28.003 of the Texas Property Code by clarifying the definition of a "good faith dispute" in construction contract payment contexts. Specifically, the bill stipulates that a good faith dispute cannot include disagreements related to other contracts, work orders, or arrangements between parties that are not directly connected to the specific construction contract under which payment is being requested or required. The changes will only apply to contracts entered into on or after September 1, 2025, which is the bill's effective date. By narrowing the definition of what constitutes a good faith dispute, the bill appears aimed at preventing parties from using unrelated contractual disagreements as a basis for withholding payment in construction contracts, thereby potentially providing more clarity and protection for contractors seeking payment for completed work.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1614