The bill, S.B. No. 1614, amends Section 28.003 of the Property Code to clarify the definition of a "good faith dispute" in the context of construction contracts. Specifically, it introduces a new subsection (c) that states a good faith dispute does not include any disagreements related to contracts, work orders, or other agreements between the parties that are not directly tied to the construction contract under which payment is being requested or required. This change aims to streamline the payment process under construction contracts by limiting the scope of disputes that can be considered "good faith."

Additionally, the bill stipulates 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 definitions and provisions will not retroactively affect existing contracts, providing clarity and predictability for future construction agreements.

Statutes affected:
Introduced: Property Code 28.003 (Property Code 28)