§ 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.
(2) The director shall consider, and the rules may include:

(2)(a) requirements regarding preliminary resolution efforts between the parties directly involved with the dispute;
(2)(b) requirements for the filing of a claim, including notification, time frames, and documentation;
(2)(c) identification of the types of costs eligible for allocation and a method for allocating costs among the parties to the dispute;
(2)(d) a required time period, not to exceed 60 days, for the resolution of the claim;
(2)(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;
(2)(f) a provision for the extension of required time periods if the claimant agrees;
(2)(g) requirements that decisions be issued in writing;
(2)(h) provisions for an administrative appeal of a decision;
(2)(i) provisions for the timely payment of claims after resolution of the dispute, including any appeals;
(2)(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;
(2)(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;
(2)(l) requirements for claims and disputes to be eligible for the dispute resolution process under this section;
(2)(m) the use of an independent hearing officer or panel or the use of arbitration or mediation; and
(2)(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:

(3)(a) is bound by the decision reached under this process, subject to any modification of the decision on appeal; and
(3)(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:

(4)(a) the director to suspend or debar the contractor, subcontractor, or supplier; or
(4)(b) the contractor, subcontractor, or supplier to be disciplined by the Division of Professional and Occupational Licensing.

Legislative History

Amended by Chapter 169, 2022 General Session