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RULE §1.31Provisions for Contract Claims

(a) This section applies only to a contested case concerning a contract claim.

(b) If the parties to a contract agree to submit questions that arise under the contract to the decision of a department employee, the employee's decision is final and conclusive unless in making the decision, the employee is guilty of fraud, misconduct, or such gross mistake as would imply bad faith or a failure to exercise an honest judgment.

(c) This subsection applies only to a claimant's request for interest under Government Code, Chapter 2251 (the Prompt Payment Act (PPA)).

  (1) A determination of the application of this subsection and the amount of interest due must be made for each claim made for a good or service.

  (2) If a claim is resolved in favor of a claimant, interest begins to accrue on the 31st day after the date that the claimant files the claim and detailed report, if such a report is required by statute or commission rule, that provides the basis of the claim under §9.1 or §9.2 of this title (relating to Claims for Purchase Contracts and Contract Claim Procedure, respectively). If a claim is not resolved in favor of the claimant, the claimant must submit a corrected invoice and interest will accrue on the claim only if the payment of the corrected amount becomes overdue under the PPA.

  (3) For purposes of this subsection, a claim is resolved in favor of a claimant only if it is determined that the amount to be paid on a claim is 50 percent or more of the greater of:

    (A) the claimant's original claim as shown in the claim and detailed report, if required, submitted under §9.1 or §9.2 of this title; or

    (B) the claimant's amended claim.

(d) An offer by the executive director to settle a claim under §9.1 of this title or a decision by the contract claim committee under §9.2 of this title is an offer to compromise a disputed claim. Its admission into evidence is controlled by Rule 408, Texas Rules of Evidence.

Source Note: The provisions of this §1.31 adopted to be effective November 18, 2010, 35 TexReg 10053

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