Authority/Reference(s) Texas Government Code, §2260; Texas Government Code, §2009
Revision Date December 31, 2009


In accordance with Texas Government Code Chapters 2260 and 2009 it is the policy of DFPS that Contract Dispute Resolution processes are established for resolving contract disputes without having a state or federal judge or jury decide the dispute in a trial.

Contract Dispute Resolution should be used when a contractor makes a claim for breach of contract against DFPS or when DFPS makes a claim for breach of contract against the contractor and 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 the breach of contract.

Contract Dispute Resolution offers several advantages over the traditional legal process, including:

  • time and cost savings;
  • more involvement and control over the outcome by the parties involved; and
  • fewer formalities and greater flexibility.

The contractor's claim for breach of contract must be submitted to 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 in the ordinary course of business.