The Government Contract Disputes Process. Almost since government contracting began, there has been a special process followed for disputes arising under a government contract between the Government and the contractor. Until 1978, this process was governed solely by a "Disputes" clause found in almost all government contracts. With this type, the government puts into the contract what are called cost shares, so if the contractor underruns the contact, the government shares part of the savings. On the flipside if the contractor overruns the contract, the government pays part of the overrun, not all of it. Contracting Officers have the authority to award, administer, and terminate Government contracts. Government contract claims are subject to the Contract Disputes Act, which requires the claim to be presented first to the Contracting Officer.