Authority/Reference(s) Texas Contract Management Guide, Ch. 7; Texas Government Code §2262
Revision Date July 1, 2016


A contract termination occurs when:

  • the term of the contract expires;
  • both parties mutually agree to end the contract; and/or
  • either party terminates the contract because of irreconcilable differences, inability to continue, or other reason(s).

Texas Department of Family and Protective Services (DFPS) may terminate a contract when it is in its best interest even though the contractor may be performing in a satisfactory manner. The contractors right to terminate is described in the contract. A contractor is not sent a termination notice when a contract expires; however, when the DFPS terminates a contract before its expiration date, a notice of contract remedy is required. The person authorized to sign the contract must also sign the termination notice.

DFPS staff are responsible for making reasonable efforts to keep contractors informed of compliance issues and for resolving, whenever possible, compliance issues before contract remedy is necessary.

Termination for Cause

Termination for cause is the contractual right of DFPS to terminate, in whole or in part, the contractor's right to proceed with the contract by reason of the contractor's failure to deliver goods or services or to perform in a manner that fulfills the terms and conditions of the contract. Included is failure to:

  • deliver goods or services within the time specified in the contract;
  • perform any other provision of the contract; and
  • progress, which could jeopardize the carrying out of the contract.

DFPS may terminate a contract for default if the contractor submits falsified documents or fraudulent billings or makes false statements.

DFPS may immediately terminate a contract for cause if it is not disallowed by law. Under a termination for cause, DFPS is not liable for the contractor's costs on undelivered work and is entitled to repayment of any advance payments and of any progress payments for such work..