§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.



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



(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
(c) shall be mailed or otherwise furnished immediately to the contractor.



(e)  The decision under subsection (c) 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 (c)
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]