The bill amends the Government Code and the Property Code to clarify the definition of a bona fide dispute in relation to construction contracts for public works. Specifically, it introduces a new provision stating that a bona fide dispute does not include an audit of the public work project that extends beyond 60 days after the substantial completion of the project. This insertion aims to provide clearer guidelines for resolving disputes related to construction contracts and to expedite the payment process for contractors.

Additionally, the bill specifies that the changes will only apply to contracts entered into on or after the effective date of the Act, which is set for September 1, 2025. This ensures that the new provisions will not retroactively affect existing contracts, allowing for a smoother transition to the updated legal framework.

Statutes affected:
Introduced: Government Code 2251.002, Property Code 28.003 (Property Code 28, Government Code 2251)