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House Bill 1940 |
House Author: Ritter |
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Effective: 9-1-05 |
Senate Sponsor: Wentworth |
House Bill 1940 amends Government Code provisions relating to contractor claims against the state government. It increases the amount recoverable by a contractor to include any delay or labor-related expense the contractor incurs as a result of an action or inaction by the state or a party supervised by the state. The bill reduces from 90 to 60 days the time the state has to assert a counterclaim on receiving notice from the contractor of a claim of breach of contract. It revises other deadlines to provide that in all cases the state must begin negotiation with the contractor by the 120th day after receiving the claim, and to provide that before the 120th day the parties may agree to mediation. The bill relaxes a provision that a decision in a contested case hearing of a claim cannot be appealed, to allow appeal for abuse of discretion. The bill clarifies the cap on claim payment by the state and also clarifies the right of a contractor who is sued by the state to assert a counterclaim or right of offset.