The following words and terms, when used in this subchapter, shall have the following meaning, unless the context clearly indicates otherwise:(1) Claim--A demand for damages by the contractor based upon the department's alleged breach of a contract.(2) Commissioner--Commissioner of Insurance of the State of Texas.(3) Contract--A written contract between the department and a contractor by the terms of which the contractor agrees either:(A) to provide goods or services, by sale or lease, to or for the department; or(B) to perform a project as defined by Government Code, §2166.001.(4) Contractor--Independent contractor who has entered into a contract directly with the department. The term does not include:(A) the contractor's subcontractor, officer, employee, agent or other person furnishing goods or services to a contractor;(B) an employee of the department; or(C) a student at an institution of higher education.(5) Counterclaim--A demand by the department based upon the contractor's claim.(6) Day--A calendar day. If an act is required to occur on a day falling on a Saturday, Sunday, or holiday, the first working day which is not one of these days should be counted as the required day for purpose of that act.(7) Department--The Texas Department of Insurance.(8) Event--An act or omission or a series of acts or omissions giving rise to a claim.(9) Goods--Supplies, materials or equipment.(10) Parties--The contractor and the department that have entered into a contract in connection with which a claim of breach of contract has been filed under this subchapter.(11) Project--As defined in Government Code §2166.001, a building construction project that is financed wholly or partly by a specific appropriation, bond issue or federal money, including the construction of:(A) a building, structure, or appurtenant facility or utility, including the acquisition and installation of original equipment and original furnishing; and(B) an addition to, or alteration, modification, rehabilitation or repair of an existing building, structure, or appurtenant facility or utility.(12) Services--The furnishing of skilled or unskilled labor or consulting or professional work, or a combination thereof, excluding the labor of an employee of the department.