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

443 words·~2 min read·/ut/title-63a/chapter-5b/63a-5b-606

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Effective 5/4/2022

(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.

(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