Certified Texas Contract Manager (CTCM) Certification Exam

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Under Texas Government Code Chapter 2260, if a contractor has a breach of contract claim against a state agency and informal negotiations fail, what is the mandatory next step before a lawsuit can be filed?

The contractor must obtain legislative consent to sue the state. The dispute must be submitted for binding arbitration with a private firm. The claim must be referred to the State Office of Administrative Hearings (SOAH) for a contested case hearing. The contractor must file a formal complaint with the Texas Attorney General's office.

Correct Answer:

The claim must be referred to the State Office of Administrative Hearings (SOAH) for a contested case hearing.

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