H.B. 115

1

DFCM CONTRACT CLAIM RESOLUTION
2 PROCESS
3 2003 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Stephen D. Clark
6 This act modifies statutes governing the Division of Facilities Construction and
7 Management by requiring the division to make rules establishing certain processes for
8 resolving construction contract claims against the state. This act defines certain
9 requirements that the division must include as part of that process.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 ENACTS:
12 63A-5-206.5, Utah Code Annotated 1953
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 63A-5-206.5 is enacted to read:
15 63A-5-206.5. Division to make rules establishing a certification and conflict
16 resolution procedure.
17 (1) The division shall:
18 (a) make rules that establish a formal process for resolving claims made by contractors
19 and subcontractors employed on state building projects if the amount of the contract meets or
20 exceeds a particular dollar amount;
21 (b) make rules that establish a formal process for certifying that buildings are ready for
22 occupancy and that all claims from contractors or subcontractors employed on the project have
23 been resolved before the building may be occupied; and
24 (c) before enacting the rules, present a draft copy of those rules to the Government
25 Operations Interim Committee for review, comment, and recommendations by August 1, 2003.
26 (2) The division shall ensure that:
27 (a) to the extent possible, the claims process established by the rules complies with the

28 procedures and requirements of Title 63 Chapter 46b, Administrative Procedures Act;
29 (b) the claims resolution process established by the rules governs both contractors who
30 have a contractual relationship with the state and subcontractors who have a contract
31 relationship with the general contractor;
32 (c) the person vested with the power to certify that buildings are fit for occupancy and
33 that claims have been resolved is independent of the division; and
34 (d) the claims process established by rule requires that:
35 (i) a contractor or subcontractor who has a claim against the state file a notice of claim
36 with the division to begin the claim resolution process;
37 (ii) the contractor or subcontractor must document its claim within a time period
38 established by rule or the claim will be dismissed;
39 (iii) the division must resolve and pay the claim within a time period established by
40 rule unless extraordinary circumstances as defined by rule allow the time for settlement and
41 payment to be extended; and
42 (iv) if the claim is not settled within a time period established by rule that begins on the
43 date of the notice of claim, the contractor or subcontractor may initiate an action on the claim
44 in district court.




Legislative Review Note
as of 1-9-03 3:53 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel