Section 8.2076  Disputes and Contract Controversies

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.

c)         Effect of Judicial Proceedings. This Section shall not apply in cases in which CDB requests and receives representation from the Illinois Attorney General.