HB 3005
AN ACT relating to the payment of funds under certain construction
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Limits the duration of audits for public construction projects and private construction projects to 60 days after substantial completion. After the 60-day mark, any ongoing audit will no longer be considered a valid reason for withholding payment to contractors. The law applies to new contracts entered into after September 1, 2025, and aims to prevent prolonged payment disputes in construction projects by setting a clear timeframe for audit resolution.
Subject Areas
Bill Text
relating to the payment of funds under certain construction BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2251.002, Government Code, is amended by adding Subsection (c) to read as follows: (c) For purposes of this chapter, a bona fide dispute with respect to a contract for the construction of a public work does not include an audit of the public work project that continues for more than 60 days after the date of the substantial completion of the SECTION 2. Section 28.003, Property Code, is amended by adding Subsection (c) to read as follows: (c) For purposes of Subsection (a) or (b), a good faith dispute does not include an audit of the construction or improvement project under contract that continues for more than 60 days after the date of the substantial completion of the project. SECTION 3. The changes in law made by this Act apply only to a contract that is entered into on or after the effective date of SECTION 4. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to the payment of funds under certain construction
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