Illinois Administrative Code › Title 44 - GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT › Part 8 - CHIEF PROCUREMENT OFFICER FOR THE CAPITAL DEVELOPMENT BOARD › Subpart J - PROTESTS, DISPUTES AND CONTRACT CONTROVERSIES › Section 8.2076 - Disputes and Contract Controversies

Current through Register Vol. 48, No. 28, July 12, 2024
a) In the event of a contract dispute or
				controversies, CDB and the vendor will exercise good faith efforts to resolve
				the matter fairly, amicably and in a timely manner. CDB shall commence an
				informal conference to investigate the merits of a contract dispute or
				controversy. CDB shall determine whether the dispute lacks merit, in
				consultation with the CPO, and that mediation will not be fruitful. If CDB,
				after consultation with the CPO, determines that mediation will not be
				fruitful, CDB will inform the other party or parties in writing of this
				determination, and the other parties may bring legal action without further
				pursuit of ADR. Otherwise, if the dispute is not settled within 90 days after
				the initial informal conference, a mediator will be appointed, unless the
				parties and the CPO agree to continue the informal discussions.
b) When efforts to resolve disputes and
				controversies that may result in an amendment to the contract in the form of a
				change order, modification or settlement are not successful, the parties to the
				dispute shall utilize alternative dispute resolution (ADR) methods required by
				the contract or bid documents. At the discretion of CDB, and under the
				authority of the CPO, an independent neutral party can be identified at the
				onset of a project to facilitate ADR requests. All related or associated
				disputes can be combined into a single Alternative Dispute Resolution (ADR)
				process. At a minimum, ADR shall be a condition precedent to the filing of any
				court action valued in excess of $25,000. The contents of communications
				between the CDB staff and CPO staff regarding disputes will not be divulged to
				a third party except by mutual agreement of CDB and the CPO or in accordance
				with the order of a court of competent jurisdiction. Once the parties have
				agreed on a mediator, CPO staff will not discuss pending disputes with the
				vendor or the vendor's attorney without CDB legal staff present. When ADR is
				utilized, the Contractor, CDB and the CPO agree to have in attendance a person
				with actual authority to resolve the dispute. When it is apparent that approval
				of CDB's Board is required, CDB personnel shall notify all concerned at the
				earliest possible time when it is apparent that Board approval will be required
				for ultimate resolution.
1) Disputes less
				than $25,000 shall utilize an expedited process of ADR to attempt to conclude
				the dispute and that may result in an amendment to the contract in the form of
				a change order, modification or settlement in 60 days or less, when
				practical.
2) Disputes greater than
				$25,000 require the parties to use the best efforts to expeditiously resolve
				the matter.
3) Disputes based on
				claims that include requests for additional compensation for delays in project
				completion will commence within 90 days after substantial completion of a
				project.
4) This Section shall not
				apply to mechanics lien actions, unless the parties to the lien consent, nor to
				contract terminations, CDB's right to carry out the work, and non-project
				matters such as suspension of prequalification. CDB shall immediately notify
				the CPO of any dispute that may result in an amendment to the contract in the
				form of a change order, modification or settlement. The CPO's approval shall be
				required to resolve a dispute resulting in payment to a party to the dispute,
				other than the State of Illinois, or any other procurement action under a
				contract with CDB for a period of 10 months after substantial completion of a
				project. During the 10 month period, CDB shall provide status updates on open
				issues, including requests for Alternative Dispute Resolution, to the CPO and
				contractor at no more than 90 day intervals. Failure to provide status updates
				shall increase the CPO approval period for each day of delay.
5) "Dispute" means any contested claim or
				matter growing out of the project or CDB's project contracts regarding payment
				or time for performance, but not including personal injury cases (including
				worker injuries), vehicle accidents, contractor-subcontractor matters in the
				nature of lien actions, or employment matters.