H.B. No. 3289 amends Section 28.003 of the Property Code to clarify the definition of a "good faith dispute" in the context of construction contracts. The new language specifies that a good faith dispute does not include disagreements related to contracts, work orders, or any agreements between the parties that are not directly tied to the construction contract under which payment is being requested or required. This amendment aims to streamline the payment process by limiting the scope of disputes that can be considered "good faith."

The bill applies only to contracts entered into on or after its effective date of September 1, 2025, ensuring that the new provisions will not retroactively affect existing agreements. This legislative change is intended to provide clearer guidelines for parties involved in construction contracts, potentially reducing the number of disputes and facilitating timely payments.

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