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ARTICLE 15 - DISPUTE RESOLUTION

15.1 OWNER and CONTRACTOR agree that they shall first submit any and all unsettled claims, counterclaims, disputes and other matters in question between them arising out of or relating to the Contract Documents or the breach thereof to mediation according to the provisions of Attachment A.

15.2 Agreement To Arbitrate. If agreed by OWNER and CONTRACTOR, any claims, disputes and other matters in question between OWNER and CONTRACTOR arising out of, or relating to the Contract Documents or the breach thereof, except those exempted claims and disputes described elsewhere in the Contract Documents, will be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association then in effect subject to the limitations otherwise set forth in this Article. This agreement to arbitrate and any other agreement or consent to arbitrate entered into in accordance herewith as provided in this Article will be specifically enforceable under the prevailing law of any court having jurisdiction.

15.3 Claims Referred To ENGINEER. No demand for arbitration of any claim, dispute or other matter properly referred to ENGINEER initially for decision in accordance with Article 8 will be made until the earlier of (a) the date on which ENGINEER has rendered a decision or (b) the tenth (10th) day after the parties have presented their evidence to ENGINEER if a written decision has not been rendered by ENGINEER before that date. No demand for arbitration of any such claim, dispute or other matter will be made later than thirty (30) days after the date on which ENGINEER has rendered a written decision in respect thereof; and the failure to demand arbitration within said thirty (30) days period shall result in ENGINEER's decision being final and binding upon OWNER and CONTRACTOR. If ENGINEER renders a decision after arbitration proceedings have been initiated, such decision may be entered as evidence but will not supersede the arbitration proceedings, except where the decision is acceptable to the parties concerned.

15.4 Demand For Arbitration; Objection. Notice of demand for arbitration shall be filed in writing with the other party to the Agreement and with the American Arbitration Association, and a copy will be sent to ENGINEER for information. The demand for arbitration will be made within the thirty (30) day or ten (10) day period specified in Section 15.3 as applicable, and in all other cases within a reasonable time after the claim, dispute or other matter in question has arisen, and in no event shall any such demand be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations.

15.5 Consolidation and Joinder. No arbitration arising out of or relating to the Contract Documents shall include, by consolidation, joinder or in any other manner, any other person or entity (including ENGINEER, ENGINEER's agents, employees or consultants) who is not a party to this Agreement unless:

      15.5.1 The inclusion of such other person or entity is necessary if complete relief is to be afforded among those who are already parties to the arbitration;

      15.5.2 Such other person or entity is substantially involved in a question of law or fact which is common to those who are already parties to the arbitration and which will arise in such proceedings; and

      15.5.3 The written consent of the other person or entity sought to be included and of OWNER and CONTRACTOR has been obtained for such inclusion, which consent shall make specific reference to this Section; but no such consent shall constitute consent to arbitration of any dispute not specifically described in such consent or to arbitration with any party not specifically identified in such consent.

15.6 Enforcement of Award. The award rendered by the arbitrators will be final,, and shall be binding upon CONTRACTOR's surety, whether or not such surety is joined therein, judgment may be entered upon it in any court having jurisdiction thereof, and will not be subject to modification or appeal except to the extent permitted by Sections 10 and 11 of the Federal Arbitration Act (9 U.S.C. & 10, 11).

 
 

Last Updated: 1/4/2007 |  Print This Page | Email to Friend

 

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