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HB 3289

AN ACT relating to the payment of funds under construction contracts.

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Committee

Not yet assigned

Fiscal Note

Not available

What This Bill Does

Clarifies the definition of a "good faith dispute" in construction contracts, specifying that disputes unrelated to the specific construction contract cannot be used as a reason to withhold payment. The legislation impacts contractors and property owners by narrowing the circumstances under which payments can be delayed, ensuring more direct and straightforward payment processes for construction work. The changes will apply only to contracts entered into on or after September 1, 2025.

Subject Areas

MEDIATION, DISPUTE RESOLUTION, & ARBITRATION Property Interests--General Business & Commerce--General BUILDING CONSTRUCTION

Bill Text

relating to the payment of funds under construction contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 28.003, Property Code, is amended by
adding Subsection (c) to read as follows:
(c)  For purposes of this section, a good faith dispute does
not include a dispute relating to a contract, work order,
contractual arrangement, or any other agreement between the parties
that is not related to the contract for construction under which
payment is requested or required.
SECTION 2.  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 3.  This Act takes effect September 1, 2025.

Bill History

filed

Bill filed: AN ACT relating to the payment of funds under construction contracts.

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