CTCM - Certified Texas Contract Manager Negotiation and Dispute Resolution Questions and Answers

Question 1

A contract manager for a Texas state agency and a contractor are at an impasse regarding a contractor's claim for breach of contract.
After good-faith negotiations required by statute have failed, what is the mandatory next step in the formal dispute resolution process under Texas Government Code Chapter 2260?

Accepted Answer

The parties must mediate the dispute with a qualified impartial third party.

Answer

The contractor is authorized to immediately file a lawsuit in a state district court.

Answer

The agency's executive director must issue a final, binding decision on the claim.

Answer

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

Question 2

In the context of Alternative Dispute Resolution (ADR) for a Texas state contract, which of the following best describes the primary role of a mediator?

Accepted Answer

To facilitate communication between the parties and assist them in reaching a voluntary, mutually acceptable agreement.

Answer

To issue a legally binding decision that resolves the dispute for the parties.

Answer

To represent the state agency's legal interests and advocate for its position.

Answer

To conduct a formal investigation and present a report of findings to a judge.

Question 3

A contractor submits an invoice that the contract manager believes is not aligned with the contract's payment terms. Which of the following is the most appropriate and effective initial action for the contract manager to take?

Accepted Answer

Communicate directly with the contractor to discuss the discrepancy and seek clarification and informal resolution.

Answer

Immediately invoke the formal dispute resolution clause under Texas Government Code Chapter 2260.

Answer

Refuse payment and wait for the contractor to file a formal claim.

Answer

Send the matter to the agency's legal counsel to prepare for potential litigation.

Question 4

Which of the following is a core principle of interest-based negotiation, a strategy often encouraged in contract management?

Accepted Answer

Separating the people from the problem and focusing on underlying needs and goals.

Answer

Achieving victory by conceding as little as possible.

Answer

Maintaining a firm, unwavering position on all key issues.

Answer

Applying pressure to exploit the other party's weaknesses.

Question 5

According to Texas Government Code §2260.052, once a contractor files a formal claim for breach of contract, the state agency must take what specific action within 120 days of receiving the claim?

Accepted Answer

The agency's chief administrative officer or designee must examine the claim and negotiate with the contractor.

Answer

The agency must submit a formal response to the Texas Attorney General for review.

Answer

The agency must schedule a mandatory mediation session with the contractor.

Answer

The agency must file a counterclaim, regardless of whether one exists, to preserve its rights.

Question 6

What is the primary objective of the statutory dispute resolution process established by Texas Government Code Chapter 2260 for contract claims against the state?

Accepted Answer

To provide a structured, mandatory process to encourage resolution and avoid the costs and delays of litigation.

Answer

To create a public record of all contractor grievances for legislative review.

Answer

To guarantee that all contractor claims are awarded a monetary settlement.

Answer

To transfer jurisdiction over all state contract disputes to the State Office of Administrative Hearings.