§103D-703  Authority to resolve contract andbreach of contract controversies.  (a)  This section applies tocontroversies 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, orother cause for contract modification or rescission.

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

(c)  If such a controversy is not resolved bymutual agreement, the chief procurement officer or a designee shall promptlyissue a decision in writing.  The decision shall:

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

(2)  Inform the contractor of the contractor's rightto initiate a judicial action as provided in this part.

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

(e)  The decision under subsection (c) shall befinal and conclusive unless the contractor commences a judicial action inaccordance with section 103D-711.

(f)  If the chief procurement officer or adesignee does not issue the written decision required under subsection (c)within ninety days after written request for a final decision, or within suchlonger period as may be agreed upon by the parties, then the contractor mayproceed 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]