Dispute Resolution Provision

When it is Needed

The dispute resolution provision is required in any contract where the other party agrees to provide goods and services, by sale or lease, to or for TTUHSC (i.e., when TTUHSC is purchasing or receiving goods and services).

When it is Not Needed

The dispute resolution provision is not required where TTUHSC provides goods or services to the another party (i.e., when TTUHSC is selling or providing goods or services), and no goods or services are purchased or received by TTUHSC from the other party under the same agreement.

The dispute resolution provision is also not required in contracts between:

  • a unit of state government and the federal government or its agencies, another state or another nation;
  • two or more units of state government;
  • a unit of state government and a local governmental body, or a political sub-division of another state.

Finally, the Dispute Resolution provision is not required in contracts where there is no monetary compensation, such as most affiliation agreements.

The following is the required wording of the Dispute Resolution provision. Please insert the Agency's appropriate "hereinafter name" at each occurrence of "[Agency]." A Word template is available at Dispute Resolution.

Dispute Resolution Provision

[AGENCY] shall use Texas Government Code, Chapter 2260’s dispute resolution process to attempt to resolve any claim for breach of contract arising under this Agreement that is not resolved in the ordinary course of business. Chapter 2260 requires [AGENCY] to initiate the process by providing written notice of a claim and negotiating with TTUHSC, conditions precedent to the contested case process. Governed by rules adopted by the Texas Attorney General’s Office, the contested case process is [AGENCY]'S sole and exclusive method to seek a remedy for breach, unless, after considering the Administrative Law Judge’s report, the Legislature gives consent for [AGENCY] to sue under Chapter 107 of the Civil Practices and Remedies Code. An event or claim for breach of contract is not grounds for [AGENCY] to suspend performance under this agreement.

TTUHSC DOES NOT WAIVE SOVEREIGN IMMUNITY BY ITS EXECUTION OF OR BY ANY CONDUCT OF ITS REPRESENTATIVES UNDER THIS AGREEMENT, AND THE DISPUTE RESOLUTION PROCESS DOES NOT AFFECT TTUHSC’S RIGHT TO ASSERT ALL CLAIMS AND DEFENSES IN A LAWSUIT.