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

Texas Government Code Chapter 2260 outlines a sequential dispute resolution process. After the initial negotiation period fails to resolve the claim, the statute mandates that the parties proceed to mediation. A contested case hearing at SOAH is a potential step later in the process if mediation is unsuccessful, and a lawsuit can only be filed after all statutory prerequisites have been met.

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

A mediator is a neutral third party whose role is to facilitate negotiation and communication, not to make decisions or advocate for one side. The goal of mediation is to help the parties themselves arrive at a settlement. An individual who issues a binding decision is an arbitrator, not a mediator.

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

Best practices and the objective of dispute resolution encourage resolving issues at the lowest possible level. Direct communication to identify and clarify the problem is the most efficient and collaborative first step. Escalating the issue to the formal process or legal counsel should only occur after informal attempts to resolve the disagreement have failed.

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

Interest-based negotiation focuses on understanding the underlying interests (the 'why') behind each party's stated positions (the 'what'). By separating the people from the problem and exploring mutual interests, parties can invent options for mutual gain, leading to more durable and value-driven agreements.

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

Texas Government Code §2260.052 explicitly states that the agency's chief administrative officer or a designee shall examine the claim and any counterclaim and negotiate with the contractor to resolve them. This negotiation must begin no later than the 120th day after the claim is received. Mediation is the next step if these negotiations fail.

CTCM - Certified Texas Contract Manager Practice Test

CTCM - Certified Texas Contract Manager Practice Test

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