§ 5-17-5-2 — Exemption; "good faith dispute" defined

Indiana § 5-17-5-2

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 17: PUBLIC PURCHASES
• Ch. 5: Prompt Payment

Text

(a) Section 1 of this chapter does not apply to
the following:
(1) Interagency or intergovernmental transactions.
(2) Amounts payable to employees or prospective employees of
state agencies or political subdivisions as reimbursement for
expenses.
(3) Claims subject to a good faith dispute, if before the date of
timely payment notice of the dispute is:
(A) sent by certified mail;
(B) personally delivered; or
(C) sent in accordance with the procedure in the contract.
(4) Contracts entered into before September 1, 1983.
(5) Contracts related to highway or road construction,
reconstruction, or maintenance, if:
(A) the Indiana department of transportation authorizes partial
progress payments under IC 8-23-9-14; and
(B) each progress payment does not exceed five hundred dollars
($500).
(6) Claims, contracts, or projects that are to be paid for
exclusively with federal funds.
(b) As used in subsection (a)(3), "good faith dispute" means:
(1) a contention by the state or political subdivision that goods
delivered or services rendered were:
(A) of less quantity or quality than ordered or specified by
contract;
(B) faulty; or
(C) installed improperly; or
(2) any other reason giving cause for the withholding of payment
by the state or political subdivision until such dispute is settled.

Legislative History

As added by P.L.59-1983, SEC.1. Amended by P.L.52-1988, SEC.2; P.L.18-1990, SEC.17.