Dispute Resolution

In 1999, the Texas Legislature passed a law that requires a procedure for resolving certain contract claims against the State or a State agency. This Statute is now the Texas Government Code, Chapter 2260. It requires that we place a provision in every contract to which the statute applies stating that the procedures must be used to try to resolve a dispute arising under the contract.

All contracts should include one of the following Dispute Resolution provisions:

Dispute Resolution Provision for Contracts with a cost of $25,000 or less:

DISPUTE RESOLUTION

To the extent that Chapter 2260, Texas Government Code, is applicable to this contract and is not preempted by other applicable law, the dispute resolution process provided for in Chapter 2260 and the related rules adopted by the Texas Attorney General pursuant to Chapter 2260, shall be used by The University of Texas at El Paso ("UTEP") and __________ (insert name of Contractor) ("CONTRACTOR") to attempt to resolve any claim for breach of contract made by CONTRACTOR that cannot be resolved in the ordinary course of business. UTEP's Vice President for Business Affairs shall examine CONTRACTOR'S claim and any counterclaim and negotiate with CONTRACTOR in an effort to resolve such claims. The parties hereto specifically agree that (i) neither the occurrence of an event giving rise to a breach of contract claim nor the pendency of a claim constitute grounds for the suspension of performance by CONTRACTOR; (ii) neither the issuance of this Contract by UTEP nor any other conduct, action or inaction of any representative of UTEP relating to this Contract constitutes or is intended to constitute a waiver of UTEP's of the state's sovereign immunity to suit; and (iii) UTEP has not waived its right to seek redress in the courts.


Dispute Resolution Provision for Contracts with a cost greater than $25,000:

DISPUTE RESOLUTION

  1. To the extent that Chapter 2260 of the Texas Government Code, as it may be amended from time to time ("Chapter 2260"), is applicable to this Contract and is not preempted by other applicable law, the dispute resolution process provided for in Chapter 2260 shall be used, as further described herein, by The University of Texas at El Paso ("UTEP") and _________ (insert name of Contractor) ("CONTRACTOR") to attempt to resolve any claim for breach of contract made by CONTRACTOR:
    1. CONTRACTOR's claims for breach of this Contract that the parties cannon resolve pursuant to other provisions of this Contract or in the ordinary course of business shall be submitted to the negotiation process provided in subchapter B of Chapter 2260. To initiate the process, CONTRACTOR shall submit written notice, as required by subchapter B of Chapter 2260, to UTEP in accordance with the notice provisions in this Contract. CONTRACTOR's notice shall specifically state that the provisions of subchapter B of Chapter 2260 are being invoked, the date and nature of the event giving rise to the claim, the specific contract provision that UTEP allegedly breached, the amount of damages CONTRACTOR seeks, and the method used to calculate the damages. Compliance by CONTRACTOR with subchapter B of Chapter 2260 is a required prerequisite to CONTRACTOR's filing of a contested case proceeding under subchapter C of Chapter 2260. The Vice President for Business Affairs at UTEP, or such other officer of UTEP as may be designated from time to time by UTEP by written notice thereof to CONTRACTOR in accordance with the notice provisions in this Contract, shall examine CONTRACTOR's claim and any counterclaim and negotiate with CONTRACTOR in an effort to resolve such claims.
    2. If the parties are unable to resolve their disputes under subparagraph (A) of this section, the contested case process provided in subchapter C of Chapter 2260 is CONTRACTOR's sole and exclusive process for seeking a remedy for any and all of CONTRACTOR's claims for breach of this Contract by UTEP.
    3. Compliance with the contested case process provided in subchapter C of Chapter 2260 is a required prerequisite to seeking consent to sue from the Legislature under Chapter 107 of the Texas Civil Practices and Remedies Code. The parties hereto specifically agree that (i) neither the execution of this Contract by UTEP nor any other conduct, action or inaction of any representative of UTEP relating to this Contract constitutes or is intended to constitute a waiver of UTEP's or the state's sovereign immunity to suit and (ii) UTEP has not waived its right to seek redress in the courts.
  2. The submission, processing and resolution of CONTRACTOR's claim is governed by the published rules adopted by the Texas Attorney General pursuant to Chapter 2260, as currently effective, hereafter enacted or subsequently amended.
  3. Neither the occurrence of an event giving rise to a breach of contract claim nor the pendency of a claim constitute grounds for the suspension of performance by CONTRACTOR, in whole or in part. UTEP and CONTRACTOR agree that any periods set forth in this Contract for notice and cure of defaults are not waived, delayed, or suspended by Chapter 2260 or this section.

The following types of contracts do not require a dispute resolution provision and are exempt from Chapter 2260: 1) Contracts with the federal government, 2) Interagency Agreements (agreements between agencies of the State of Texas), 3) Interlocal Agreements (agreements with local governing bodies such as city and county governments, or independent school districts, 4) Contracts with foreign and out-of-state governments or agencies thereof, and 5) Contracts under which UTEP is providing goods or services (not procuring them).


Back to Contracts Procedures

  • The University of Texas at El Paso.
  • 500 West University Avenue,
  • El Paso, Texas 79968
  • (915) 747-5000