Authority/Reference(s) Texas Government Code, §2260; Texas Government Code, §2009
Revision Date September 7, 2018


In accordance with Texas Government Code Chapters 2260 and 2009 DFPS’ dispute resolution processes is in place to resolve contract disputes without involving a state or federal judge or jury decide the dispute in a trial.

Contract dispute resolution is used when:

  • A contractor makes a claim for breach of contract against DFPS
  • When DFPS makes a claim for breach of contract against the contractor, or
  • When the dispute cannot be resolved in the ordinary course of business

Contract dispute resolution does not apply to non-financial contracts or to any claims for personal injury or wrongful death arising from a breach of contract.
Advantages to the contract dispute resolution over the traditional legal process, include:

  • Time and cost savings
  • More involvement and control over the outcome by the parties involved
  • Fewer formalities and greater flexibility

The contractor's claim for breach of contract must be submitted to a qualified third party for the contract dispute resolution process prior to the contractor or DFPS proceeding to a contested case hearing before the State Office of Administrative Hearings (SOAH). 

The requirements of Chapter 2260 of the Texas Government Code apply when the contractor claims that DFPS breached the contract and that the parties cannot resolve the matter in the ordinary course of business.