1. (a) Purpose. The purpose of this section is to establish procedures for resolving contract claims and disputes between TDCJ and other contract parties with respect to construction and non-construction contracts.
2. (b) Policy. It is the policy of the Texas Board of Criminal Justice (the Board) and TDCJ to resolve contract claims and disputes as efficiently and as expeditiously as possible, consistent with prudent stewardship of State of Texas assets.

3. (c) Procedures.

   1. (1) Contract Disputes Committee (the Committee).

      1. (A) The executive director will name the members and chairman of a Committee or Committees to serve at his or her pleasure. It will be the responsibility of the Committee to gather information, study, and meet informally with contractors, if requested, to resolve any disputes that may exist between the department office and the contractor, and which result in one or more contract claims or disputes.
      2. (B) TDCJ stresses that, to every extent possible, disputes between a contractor and TDCJ employee, design professional, or other contractor in charge of a project or providing services in connection with a project should be resolved during the course of the contract. If, however, after completion of a contract, or when required for orderly performance prior to completion, resolution of a contract claim or dispute is not reached with the department office, the contractor should file a detailed report and request with the department office director under whose administration the contract was or is being performed that the contract claim or dispute be referred to the committee. In no event may such a contract claim or dispute be filed with the department if more than 180 days have elapsed since the date of substantial contract completion. The filed documents will be transmitted to the Committee.
      3. (C) The Committee will secure detailed reports and recommendations from the responsible department office, and may confer with any other department office it deems appropriate.
      4. (D) The Committee will then afford the contractor an opportunity for a meeting to informally discuss the disputed matters and to provide the contractor an opportunity to present additional relevant information and respond to information the Committee has received from the department office.
      5. (E) The Committee chairman will give written notice of the Committee's proposed disposition of the claim to the contractor. If that disposition is acceptable, the contractor shall advise the Committee chairman in writing within 20 days of the date such notice is received, and the chairman will forward the agreed disposition to the executive director for a final and binding order on the claim. If the contractor is dissatisfied with the proposal of the Committee, the contractor may appeal to the executive director. If the department office is dissatisfied with the proposal of the Committee, the department office may appeal to the executive director.

   2. (2) Appeal to the Executive Director.

      1. (A) An aggrieved contractor or department office may file a written appeal of the Committee's decision to the executive director within ten days of the Committee's decision. The executive director or his or her designee may uphold, reverse, or modify the decision of the Committee.
      2. (B) The executive director or his or her designee will give written notice of the proposed disposition of the claim or dispute to the contractor and department office. If that disposition is acceptable to the contractor, the contractor shall advise the executive director, in writing, within 20 days of the date such notice is received.
   3. (3) Mediation. If the executive director's disposition is not acceptable to the contractor, the contractor and TDCJ shall mediate in good faith in an attempt to resolve the claim or dispute. TDCJ and the contractor shall agree to a mediator and shall conduct such mediation pursuant to Chapter 2008 of the Texas Government Code and §§154.051-154.073 of the Texas Civil Practice and Remedies Code. The department office shall have no right to object to the disposition of the claim or dispute made by the executive director or his or her designee.
   4. (4) Unsuccessful Mediation. In the event mediation does not resolve the claim or dispute to the satisfaction of the contractor and TDCJ, the parties may pursue legal remedies that would otherwise be available. TDCJ and the Board do not waive sovereign immunity from suit or liability due to the establishment of this Rule.
   5. (5) Approval. Any settlement reached pursuant to this section may require the approval of the Texas Board of Criminal Justice, the Attorney General of Texas, the Governor of Texas, or the Texas Legislature, as required by Board policy, statutes and rules of the State of Texas, and the General Appropriations Act.

Source Note:The provisions of this §155.31 adopted to be effective February 14, 1999, 24 TexReg 789.