{"data":{"id":"us-in/ic-5-17-5-2","jurisdiction":"us-in","citation":"IC 5-17-5-2","heading":"Exemption; \"good faith dispute\" defined","body":"Sec. 2. (a) Section 1 of this chapter does not apply to the following:\n(1) Interagency or intergovernmental transactions.\n(2) Amounts payable to employees or prospective employees of state agencies or political subdivisions as reimbursement for expenses.\n(3) Claims subject to a good faith dispute, if before the date of timely payment notice of the dispute is:\n(A) sent by certified mail;\n(B) personally delivered; or\n(C) sent in accordance with the procedure in the contract.\n(4) Contracts entered into before September 1, 1983.\n(5) Contracts related to highway or road construction, reconstruction, or maintenance, if:\n(A) the Indiana department of transportation authorizes partial progress payments under IC 8-23-9-14; and\n(B) each progress payment does not exceed five hundred dollars ($500).\n(6) Claims, contracts, or projects that are to be paid for exclusively with federal funds.\n(b) As used in subsection (a)(3), \"good faith dispute\" means:\n(1) a contention by the state or political subdivision that goods delivered or services rendered were:\n(A) of less quantity or quality than ordered or specified by contract;\n(B) faulty; or\n(C) installed improperly; or\n(2) any other reason giving cause for the withholding of payment by the state or political subdivision until such dispute is settled.","path":["TITLE 5. STATE AND LOCAL ADMINISTRATION","ARTICLE 17. PUBLIC PURCHASES","Chapter 5. Prompt Payment"],"source_url":"https://iga.in.gov/ic/2026/Title_5.html#5-17-5-2","current_through":"2026","vintage":"2026","retrieved_at":"2026-09-02T16:11:39Z","sha256":"e08afde0daaa4a13c0d3c272986776fc88df62dacc5fa5d1844b7e6ba7480642","source_id":"us-in","stale":false,"prev":"us-in/ic-5-17-5-1","next":"us-in/ic-5-17-5-3"},"notice":"GroundRules: Original legal text. Not legal advice."}