Indiana Code 5-17-5-2. Exemption; “good faith dispute” defined

Sec. 2. (a) Section 1 of this chapter does not apply to the following:

(1) Interagency or intergovernmental transactions.

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Contract: A legal written agreement that becomes binding when signed.
Highway: includes county bridges and state and county roads, unless otherwise expressly provided. See Indiana Code 1-1-4-5

(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

(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

(2) any other reason giving cause for the withholding of payment by the state or political subdivision until such dispute is settled.

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