63A-5b-606.  Dispute resolution process — Penalties for fraud or bad faith claim.

(1)  In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the director shall make rules for the division establishing a process for resolving disputes involved with contracts under the division’s procurement authority.

Terms Used In Utah Code 63A-5b-606

  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Director: means the division director, appointed under Section 63A-5b-302. See Utah Code 63A-5b-102
  • Division: means the Division of Facilities Construction and Management created in Section 63A-5b-301. See Utah Code 63A-5b-102
  • Fraud: Intentional deception resulting in injury to another.
  • Person: means :Utah Code 68-3-12.5
  • Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
  • Writing: includes :Utah Code 68-3-12.5
(2)  The director shall consider, and the rules may include:

(a)  requirements regarding preliminary resolution efforts between the parties directly involved with the dispute;

(b)  requirements for the filing of a claim, including notification, time frames, and documentation;

(c)  identification of the types of costs eligible for allocation and a method for allocating costs among the parties to the dispute;

(d)  a required time period, not to exceed 60 days, for the resolution of the claim;

(e)  a provision for an independent hearing officer, panel, or arbitrator to extend the time period for resolution of the claim by not to exceed 60 additional days for good cause;

(f)  a provision for the extension of required time periods if the claimant agrees;

(g)  requirements that decisions be issued in writing;

(h)  provisions for an administrative appeal of a decision;

(i)  provisions for the timely payment of claims after resolution of the dispute, including any appeals;

(j)  a requirement that the final determination resulting from the dispute resolution process provided for in the rules is a final agency action subject to judicial review as provided in Sections 63G-4-401 and 63G-4-402;

(k)  a requirement that a claim or dispute that does not include a monetary claim against the division or an agent of the division is not limited to the dispute resolution process provided for in this section;

(l)  requirements for claims and disputes to be eligible for the dispute resolution process under this section;

(m)  the use of an independent hearing officer or panel or the use of arbitration or mediation; and

(n)  the circumstances under which a subcontractor may file a claim directly with the division.

(3)  A person pursuing a claim under the process established as provided in this section:

(a)  is bound by the decision reached under this process, subject to any modification of the decision on appeal; and

(b)  may not pursue a claim, protest, or dispute under the dispute resolution process established in Title 63G, Chapter 6a, Utah Procurement Code.

(4)  A fraudulent misrepresentation made by or bad faith claim pursued by a contractor, subcontractor, or supplier, may be grounds for:

(a)  the director to suspend or debar the contractor, subcontractor, or supplier; or

(b)  the contractor, subcontractor, or supplier to be disciplined by the Division of Professional and Occupational Licensing.

Amended by Chapter 169, 2022 General Session