103D-703

Authority to resolve contract and breach of contract

§103D-703 Authority to resolve contract and breach of contract controversies. (a) This section applies to controversies between a governmental body and a contractor which arise under, or by virtue of, a contract between them, including, without limitation, controversies based upon breach of contract, mistake, misrepresentation, or other cause for contract modification or rescission.

(b) The chief procurement officer or a designee is authorized, prior to commencement of an action in a court brought pursuant to section 103D-711, to settle and resolve a controversy described in subsection (a). This authority shall be exercised in accordance with rules adopted by the policy board.

(1) State the reasons for the action taken; and

(2) Inform the contractor of the contractor’s right to initiate a judicial action as provided in this part.

(d) A copy of the decision under subsection © shall be mailed or otherwise furnished immediately to the contractor.

(e) The decision under subsection © shall be final and conclusive unless the contractor commences a judicial action in accordance with section 103D-711.

(f) If the chief procurement officer or a designee does not issue the written decision required under subsection © within ninety days after written request for a final decision, or within such longer period as may be agreed upon by the parties, then the contractor may proceed as if an adverse decision had been received. [L Sp 1993, c 8, pt of §2; am L 1997, c 352, §23; am L 1999, c 162, §3]

Case Notes

Where it appeared that the procedure established in this section was the exclusive means available for plaintiff to resolve the retainage controversy based on a breach of contract, and plaintiff did not avail itself of these exclusive means, the circuit court lacked jurisdiction to decide plaintiff’s claim for retainage. 122 H. 60, 222 P.3d 979.