H.B. No. 3005 amends Section 2251.002 of the Government Code to clarify the definition of a bona fide dispute in relation to construction contracts for public works. The new language specifies that such a dispute does not include an audit of the public work project that extends beyond 60 days after the project's substantial completion. This addition aims to streamline the resolution of disputes and ensure timely payments under construction contracts.
The provisions of this bill apply only to contracts entered into on or after its effective date, which is set for September 1, 2025. The bill was passed by both the House and Senate in May 2025, indicating bipartisan support for the changes aimed at improving the efficiency of construction contract management in Texas.
Statutes affected: Introduced: Government Code 2251.002, Property Code 28.003 (Property Code 28, Government Code 2251)
House Committee Report: Government Code 2251.002, Property Code 28.003 (Property Code 28, Government Code 2251)
Engrossed: Government Code 2251.002 (Property Code 28, Government Code 2251)
Senate Committee Report: Government Code 2251.002 (Property Code 28, Government Code 2251)
Enrolled: Government Code 2251.002 (Property Code 28, Government Code 2251)