1. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Commission--The three member body appointed by the governor to compose the Texas Transportation Commission.
   2. (2) Committee--The Contract Claim Committee.
   3. (3) Contract claim--A claim for additional compensation, time extension, or any other reason, arising out of a contract between the State of Texas, acting in its own capacity or as an agent of a local government, and a contractor, which is entered into and administered by the Texas Department of Transportation pursuant to Transportation Code, Section 22.018, Section 391.091, Chapter 223, Chapter 361, or Government Code, Chapter 2254, Subchapters A and B.
   4. (4) Contractor--An individual, partnership, corporation, or other business entity that is a party to a written contract with the State of Texas which is entered into and administered by the Texas Department of Transportation pursuant to Transportation Code, Section 22.018, Section 391.091, Chapter 223, Chapter 361, or Government Code, Chapter 2254, Subchapters A and B.
   5. (5) Department--The Texas Department of Transportation.
   6. (6) Department office--The department district, division, or office responsible for the administration of the contract.
   7. (7) Department office director--The chief administrative officer of the responsible department office, such officer to be a district engineer, division director, or office director.
   8. (8) District--One of the 25 districts of the department.
   9. (9) Executive director--The executive director of the Texas Department of Transportation.

2. (b) Contract claim committee.

   1. (1) The executive director will name the members and chairman of a contract claim committee or committees to serve at his or her pleasure. The chairman may add members to the committee, including one or more district engineers who will be assigned to the committee on a rotating basis, with a preference, if possible, for district engineers of districts that do not have a current contractual relationship with the contractor involved in the contract claim. It will be the responsibility of a 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.
   2. (2) The commission stresses that, to every extent possible, disputes between a contractor and the engineer or other department employee in charge of 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 is not reached with the department office, the contractor may file a detailed report and contract claim request with the department office director under whose administration the contract was or is being performed, the department's Construction Division, or the committee. Documents filed with the office director or the Construction Division will be transmitted to the committee.
   3. (3) The committee will secure detailed reports and recommendations from the responsible department office, and may confer with any other department office deemed appropriate by the committee.
   4. (4) 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 relevant information and respond to information the committee has received from the department office.
   5. (5) 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 to the commission an agreed disposition involving payment to the contractor, for a final and binding order on the claim. If the contractor is dissatisfied with the proposal of the committee, the contractor may petition the executive director for a formal administrative hearing to litigate the claim pursuant to the provisions of §§1.21 et seq. of this title (relating to Contested Case Procedure).
   6. (6) Proceedings before the department office director or the committee are in the nature of an attempt to mutually resolve a contract claim without litigation and are not admissible for any purpose in a formal administrative hearing provided in paragraph (5) of this subsection. All oral communications, reports, or other written documentation prepared by department staff in connection with the analysis of a contract claim are part of the attempt to mutually resolve a contract claim without litigation, and are also not admissible for any purpose in a formal administrative hearing provided in paragraph (5) of this subsection.
   7. (7) The administrative law judge's proposal for decision in a formal administrative hearing provided in paragraph (5) of this subsection shall be submitted to the executive director for adoption. The executive director may change a finding of fact or conclusion of law made by the administrative law judge or may vacate or modify an order issued by the administrative law judge. The executive director shall provide a written statement containing the reason and legal basis for any change.
   8. (8) If the contractor fails to submit the petition within 20 days after notice of the committee's recommendation is received, that recommendation will be final, and all further appeal by the contractor shall be barred.

Source Note:The provisions of this §9.2 adopted to be effective July 9, 1996, 21 TexReg 5979; amended to be effective January 10, 1999, 24 TexReg 167; amended to be effective October 16, 2003, 28 TexReg 8957.