Little-Tex Insulation sued the General Services Commission for breach of contract over unpaid work. The Texas Supreme Court ruled that the state cannot be sued in regular court for contract disputes, even if it accepted the benefits of the work. Instead, contractors must use the state's administrative procedure under Chapter 2260. This decision eliminates the courthouse as an option for state contract disputes.
You cannot sue the state in court for breach of contract—you must use the administrative process in Texas Government Code Chapter 2260 or lose your claim entirely.
The state's acceptance of your work and payment of partial amounts does NOT waive its immunity from lawsuits; document everything for the administrative claim instead.