Code of Maryland Regulations › Title 21 - STATE PROCUREMENT REGULATIONS › Subtitle 07 - CONTRACT TERMS AND CONDITIONS › Chapter 21.07.02 - Mandatory Construction Contract Clauses › Section 21.07.02.05-1 - Disputes

Current through Register Vol. 51, No. 14, July 12, 2024
Mandatory provision for all construction contracts:
"A. This contract is subject to the
				provisions of State Finance and Procurement Article, Title 15, Subtitle 2,
				Annotated Code of Maryland, and COMAR 21.10.
"B. Except as otherwise provided in this
				contract or by law, all disputes arising under or as a result of a breach of
				this contract that are not disposed of by mutual agreement shall be resolved in
				accordance with this clause.
"C. As
				used herein, claim means a written demand or assertion by one of the parties
				seeking, as a legal right, the payment of money, adjustment or interpretation
				of contract terms, or other relief, arising under or relating to this contract.
				A voucher, invoice, or request for payment that is not in dispute when
				submitted is not a claim under this clause. However, if the submission
				subsequently is not acted upon in a reasonable time, or is disputed as to
				liability or amount, it may be converted to a claim for the purpose of this
				clause.
"D. Within 30 days after
				contractor knows or should have known of the basis for a claim relating to this
				contract, contractor shall file a written notice of claim with the procurement
				officer.
"E. Contemporaneously
				with, or within 90 days after, the filing of a notice of claim, contractor
				shall submit the written claim to the procurement officer. If contractor so
				requests, the procurement officer, on conditions the procurement officer deems
				satisfactory to the unit, may extend the time in which contractor must submit
				the claim. An example of when a procurement officer may grant an extension
				includes situations in which the procurement officer finds that a
				contemporaneous or timely cost quantification following the filing of the
				notice of claim is impossible or impractical.
"F. The claim shall set forth all the facts
				surrounding the controversy. Contractor, at the discretion of the procurement
				officer, may be afforded an opportunity to be heard and to offer evidence in
				support of the claim.
"G. The
				procurement officer shall mail or deliver written notification of the final
				decision within:
"(1) 90 days after the
				procurement officer receives the claim if the claim is an amount for which the
				Appeals Board accelerated procedure, set forth in COMAR
				21.10.06.12 o, may be
				used;
"(2) 180 days after the
				procurement officer receives the claim for a claim not covered under §G(1)
				of this regulation; or
"(3) A
				longer period that the procurement officer and contractor agree to in
				writing.
"H. The final
				decision may award a contract claim only for those expenses incurred not more
				than 30 days before contractor was initially required to have filed the notice
				of claim.
"I. The procurement
				officer's decision is the final action of the agency. If the procurement
				officer fails to render a final decision within the time required, contractor
				may deem the failure to be a final decision not to pay the claim.
"J. If the final decision grants the claim in
				part and denies the claim in part, the agency shall pay contractor the
				undisputed amount. Payment of the partial claim is not an admission of
				liability by the agency and does not preclude the agency from recovering the
				amount paid if a subsequent determination modifies the final
				decision.
"K. Contractor may file a
				written appeal with the Maryland State Board of Contract Appeals within 30 days
				of receipt of notice of the decision.
"L. Pending resolution of a claim, contractor
				shall proceed diligently with the performance of the contract in accordance
				with the procurement officer's decision."