Section 5-16-6.5-5 - Penalties for breach of contract(a) If a breach of contract occurs under section 4 of this chapter, the public agency shall suspend all payments to the contractor under that contract unless it determines that the contractor made a good faith effort to avoid the breach but was unable to do so.(b) If the public agency determines that the contractor did not act to avoid the breach, it may: (1) rescind the contract and recover all amounts paid under it if the breach occurs under section 4(1) of this chapter;(2) recover all amounts paid to the contractor under the contract that were intended for expenditure with a disadvantaged business enterprise or a women owned business enterprise if the breach occurred under section 4(2) of this chapter; or(3) employ any legal or administrative remedies that the agency prescribes by rule or in the contract.As added by P.L. 70-1987, SEC.1. Amended by P.L. 71-1989, SEC.1.