Office of the Vice President and Chief Financial Officer

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 in 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.

The Office of General Counsel (OGC) at The University of Texas System has an excellent website that includes the history behind the Dispute Resolution statute, it’s application, and why we must use it. Feel free to browse this website or refer vendors to the website located at:
http://www.utsystem.edu/ogc/intellectualproperty/required_adr.htm.

Please note that OGC has determined that Chapter 2260 does not apply to certain types of contracts. Therefore, there is no need to include the dispute resolution provision in the following types of contracts:

• Contracts with the federal government
• Interagency Agreements (agreements between agencies of the State of Texas)
• Interlocal Agreements (agreements with local governing bodies such as city and county governments, or independent school districts)
• Contracts with foreign and out-of-state governments or agencies thereof
• Contracts under which UT is providing goods or services (rather than procuringgoods or services)