SECTION 20.39. Timetable

(a) Following receipt of a contractor's notice of claim, the Director or, if designated in the contract, another officer or employee of the Commission, shall review the contractor's claim and the Commission's counterclaim, if any, and initiate negotiations with the contractor to attempt to resolve the claim and counterclaim.

(b) Except as noted in subsection (c) of this section, the parties shall begin negotiations within a reasonable period of time, not to exceed 60 days following the later of:

(1) the date of termination of the contract;

(2) the completion date in the contract; or

(3) the date the Commission receives the contractor's notice of claim.

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

(1) delivering written notice to the contractor that the commencement of negotiations will be delayed; and

(2) delivering written notice to the contractor when the Commission is ready to begin negotiations.

(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 subsection (b) or (c) of this section, whichever is applicable.

(e) Except as noted in subsection (f) of this section, the parties shall complete the negotiations that are required by the rules in this division as a prerequisite to a contractor's request for a contested case hearing no later than 270 days after the Commission receives the contractor's notice of claim.

(f) The parties may agree in writing to extend the time for negotiations on or before the 270th day after the Commission receives the contractor's notice of claim. The agreement shall provide for the extension of the statutory negotiation period until a date certain. The Director, or his designee, shall sign the agreement on behalf of the Commission. The contractor, or a representative of the contractor with authority to bind the contractor, shall also sign the agreement. The parties may enter into a series of written extension agreements that comply with the requirements of this section.

(g) The contractor may request a contested case hearing before SOAH pursuant to §20.49 of this division (relating to Request for Contested Case Hearing) after the 270th day after the Commission receives the contractor's notice of claim, and the expiration of any extensions agreed to under subsection (f) of this section.

(h) The parties may agree to mediate the dispute at any time before the 270th day after the Commission receives the contractor's notice of claim or before the expiration of any extensions agreed to by the parties pursuant to subsection (f) of this section.

(i) Nothing in this section is intended to prevent the parties from agreeing to commence negotiations earlier than the deadlines established in subsections (b) and (c) of this section, or from continuing or resuming negotiations after the contractor requests a contested case hearing before SOAH.

Source Note: The provisions of this §20.39 adopted to be effective February 12, 2004, 29 TexReg 1196