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Dispute Resolution ProceduresDispute Resolution Procedures

• Contract Claims Requirements

• Public Contract Code §20118.4 (schools)

• Public Contract Code §20104

• Government Code §910

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Contract Claims PrerequisitesContract Claims Prerequisites

1. Contractual Claims Notice Requirements

2. Sample of Extra Work Notice Requirements

3. Sample of Time Extension Notice Requirements

4. Contractors Must Give Timely Notice of Extra Work/Time Extension

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Contractual Claims Notice Contractual Claims Notice PrerequisitesPrerequisites

• Provide written notice of claims for additional compensation or time– Must be within a specified period of time from

which the event occurred

• Failure to provide notice of claims as specified in the contract can prevent recovery of additional compensation or time

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Sample of Extra Work Notice Sample of Extra Work Notice RequirementsRequirements

• “If the Contractor asserts that any event has caused a change in or addition to the Work which causes an increase in the Contractor’s Cost of any part of the Work, including Work not affected directly by the change, the Contractor shall, within seven (7) days of such event, and give the Owner written notice as herein required. Said notice shall include in the circumstances that are the basis of the claim and Contractor’s best estimate of the cost and time involved.”

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Sample of Time Extension Notice Sample of Time Extension Notice RequirementRequirement

• “If the Contractor is delayed at any time in the progress of the Work by an act or neglect of the Owner, architect or a separate contractor employed by any of them, or by change orders in the Work, by labor disputes, fire, unusual delays and deliveries, unavoidable casualties or other causes beyond Contractor’s control, or by other causes for which a delay might be justified, then the time for performance will be extended for a period of time equivalent to that required to compensate for the delay.” (con’t)

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Sample of Time Extension Notice Sample of Time Extension Notice RequirementRequirement

• (con’t) “Claims for an extension of time must be made within five (5) days after occurrence of the event giving rise to such claim. Claims for extension of time must be by written notice to the Construction Manager and be accompanied by a Schedule Analysis which details entitlement to the time extension requested. Failure to request an extension of time within the time frame or in the manner set forth in this paragraph shall constitute a waiver of the Contractor’s right to an extension of time.”

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Contractors Must Give Timely Notice Contractors Must Give Timely Notice of Extra Work/Time Extensionof Extra Work/Time Extension

• For any written, verbal or implied direction to perform work which is outside of the Contractor’s original scope and/or impacts Contractor’s Project Schedule:– Must provide the contractually required notices

whenever seeking to obtain extra compensation and/or time in the time specified

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Public Contract CodesPublic Contract Codes

• Public Contract Code §20118.4 (schools)

• Public Contract Code §20104 et seq.

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Public Contract Code Public Contract Code §20118.4 §20118.4 (schools)(schools)

• Enables a K-12 school district to, without the formality of obtaining other bids, perform changes or alterations to the original contract scope of work so long as the value of the work does not exceed the greater of the amount specified in PCC §20111, §20114 or at 10% of the original contract price. – A change order which does not comply with the

foregoing is arguably invalid and the District may attempt to avoid payment to the Contractor for Work performed pursuant thereto.

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Public Contract Code Public Contract Code §20104 et seq.§20104 et seq.

• Applies to all public works claims less than $375,000 between a contractor and a local agency– Requires as a prerequisite to filing a lawsuit that the

Contractor submit to the local agency prior to the final payment a written claim including all documents necessary to substantiate the claim.

• The amount of the Contractor’s claim dictates the amount of time the local agency has to provide its written response to the claim. (con’t)

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Public Contract Code Public Contract Code §20104 et seq.§20104 et seq.(con’t)(con’t)

• If the Contractor disputes the local agencies response to its claim, or if the local agency fails to respond within the time specified by the statute, the Contractor is obligated to demand within 15 days of a specified deadline a meet and confer conference with the local agency which must be held within 30 days.

• If any portion of the Contractor’s CLAIM remains in dispute after the meet and confer, the Contractor is required to file a 900 et seq.formal claim pursuant to California Government Code §900 et seq. as a prerequisite to filing a formal lawsuit.

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Government Code Government Code §900 et seq.§900 et seq.

• Before anyone can sue a government entity listed on the California Roster of Public Agencies, they must first file a formal notice of claim pursuant to the Government Code §910.– Defines the information which must be included in the

claim as well as the time by which it must be filed.

• Failure to comply with the foregoing is grounds to dismiss a claimant’s lawsuit.

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