SECTION 55.56. Timetable

(a) Following receipt of a contractor's notice of claim, the Department or designated representative shall review the contractor's claim and the Department's counterclaim, if any, and initiate negotiations with the contractor to attempt to resolve the claim and counterclaim.

(b) Subject to subsection (c), the parties shall begin negotiations within a reasonable period of time, not to exceed 120 days after the date the Department receives the contractor's notice of claim.

(c) The parties may conduct negotiations according to an agreed schedule as long as they begin negotiations no later than the deadline set forth in subsection (b).

(d) Subject to subsection (e), the parties shall complete the negotiations that are required by this subchapter as a prerequisite to a contractor's request for contested case hearing no later than 270 days after the Department receives the contractor's notice of claim.

(e) The parties may agree in writing to extend the time for negotiations on or before the 270th day after the Department receives the contractor's notice of claim. The agreement shall be signed by representatives of the parties with authority to bind each respective party.

(f) The contractor may request a contested case hearing before the State Office of Administrative Hearings (SOAH) pursuant to §55.61 after the 270th day after the Department receives the contractor's notice of claim, or the expiration of any extension agreed to under subsection (e).

(g) The parties may agree to mediate the dispute at any time before the 120th day after the Department receives the contractor's notice of claim and before the expiration of any extension agreed to by the parties pursuant to subsection (e). The mediation shall be governed by Subchapter E.

(h) Nothing in this section is intended to prevent the parties from commencing negotiations earlier than the deadline established in subsection (b), or from continuing or resuming negotiations after the contractor requests a contested case hearing before SOAH.

Source Note: The provisions of this §55.56 adopted to be effective July 1, 2009, 34 TexReg 4323