1. (a) Upon receiving a contractor's notice of claim for breach of contract, the executive administrator or designated representative shall review the claim(s) and the board's counterclaim(s), if any, and initiate negotiations with the contractor to attempt to come to a resolution.

2. (b) Except as provided by subsection (c) of this section, the parties shall begin negotiations no later than the 60th day following the later of:

   1. (1) the date of termination of the contract;
   2. (2) the completion date in the original contract; or
   3. (3) the date the board received the contractor's notice of claim.

3. (c) The board may delay negotiations until after the 180th day after the date of the event giving rise to the claim for breach of contract by:

   1. (1) delivering written notice to the contractor that the commencement of negotiations will be delayed; and
   2. (2) delivering a second written notice to the contractor when the board is ready to begin negotiations.
4. (d) The parties may conduct negotiations according to an agreed schedule as long as they begin negotiations no later than the deadlines set forth in subsections (b) or (c) of this section, whichever is applicable.
5. (e) Except as provided by subsection (f) of this section, if a claim is not entirely resolved through negotiations, mediation, or any other assisted negotiation process utilized by the parties by the 270th day after the date that the notice of claim was received by the board, the contractor may file a written request for a contested hearing pursuant to §380.29 of this chapter (relating to Request for Contested Case Hearing).
6. (f) The parties may agree in writing to extend the time for negotiations, mediation, or any other assisted negotiation process on or before the 270th day after the board received the contractor's written notice of claim for breach of contract. The agreement shall be signed by representatives of the parties with authority to bind each respective party and shall state the final date of the extension period. The parties may enter into a series of written extension agreements that comply with the requirements of this section. If the claim is not entirely resolved at the end of the agreed upon extension period, the contractor may file a written request for a contested hearing pursuant to §380.29 of this chapter.
7. (g) The parties may agree to mediate the dispute or use any other assisted negotiation process at any time before the 270th day after the board received the contractor's written notice of claim or before the expiration of any extension agreed to by the parties pursuant to subsection (f) of this section. The mediation or other assisted negotiation process shall be governed by Subchapters C and D of this chapter.
8. (h) Nothing in this section is intended to prevent the parties from agreeing to commence negotiation, mediation, or any other assisted negotiation process earlier than the deadlines established in subsections (b) and (c) of this section, or from continuing or resuming such processes after the contractor has requested a contested case hearing.

Source Note:The provisions of this §380.24 adopted to be effective April 11, 2001, 26 TexReg 2746.