Utah Admin. Code R23-26-5 - Resolution of Claim

(1) Claim. If the decision on the PRE is not issued within the required timeframe or if the contractor is not satisfied with the decision, the contractor or other party brought into the process by the division, may submit a claim in accordance with this rule as a prerequisite for any further consideration by the division or the right to any judicial review of the issue giving rise to the claim.

(2) Subcontractors. In order for a subcontractor to have its issue considered in the claim process by the division, the subcontractor that had its issue considered under Subsection R23-26-4(5) may submit the issue as a claim by filing it with the contractor and the division within the same timeframe and with the same content requirements as required of a claim submitted by the contractor under this rule. The division shall consider the claim as being submitted by the contractor on behalf of the subcontractor. Under no circumstances shall any provision of this rule be interpreted or construed so as to create any contractual relationship between the division and any subcontractor.

(a) Upon such claim being submitted, the contractor shall fully cooperate with the director, the persons evaluating the claim and any subsequent reviewing authority.

(b) The director shall not be obligated to consider any submission which is not in accordance with this rule.

(c) The subcontractor may accompany the contractor in participating with the director, the persons evaluating the claim and any subsequent reviewing authority regarding the claim. The director, the person evaluating the claim and any subsequent reviewing authority is not precluded from meeting with the contractor separately, and it shall be the responsibility of the contractor to keep the subcontractor informed of any such meetings and matters discussed.

(d) Notwithstanding any provision of this rule, a subcontractor shall be entitled to pursue a payment bond claim.

(3) Time for Filing. The claim must be filed in writing promptly with the director, but in no case more than 21 days after the decision is issued on the PRE under Subsection R23-26-4(8) or no more than 21 days after the decision is not issued under Subsection R23-26-4(11), whichever is later.

(4) Content Requirement. The written claim shall include:

(a) a description of the issues in dispute;

(b) the basis for the claim, including documentation and analysis required by the contract and applicable law and rules that allow for the proper determination of the claim;

(c) a detailed cost estimate for any amount sought, including copies of any related invoices; and

(d) a specific identification of the relief sought.

(5) Extension of Time to Submit Documentation. The time period for submitting documentation and any analysis to support a claim may be extended by the director upon written request of the claimant showing just cause for such extension, which request must be included in the initial claim submittal.

(6) Contractor Required to Continue Performance. Pending the final determination of the claim, including any judicial review or appeal process, and unless otherwise agreed upon in writing by the director, the contractor shall proceed diligently with performance of the contract and the division shall continue to make payments in accordance with the contract.

(7) Agreement of Claimant on Method and Persons Evaluating the Claim. The director shall first attempt to reach agreement with the claimant on the method and persons to evaluate the claim. If such agreement cannot be made within 14 days of filing of the claim, the director shall select the method and persons, considering the purpose of this rule as stated in Section R23-26-1. Unless agreed to by the director and the claimant, any selected person shall not have a conflict of interest or appearance of impropriety. Any party and the persons evaluating the claim has a duty to promptly raise any circumstances regarding a conflict of interest or appearance of impropriety. If such a reasonable objection is raised, and unless otherwise agreed to by the director and the claimant, the director shall take appropriate action to eliminate the conflict of interest or appearance of impropriety. The dispute resolution methods and persons may include any of the following:

(a) A single expert or hearing officer qualified in the field that is the subject of the claim;

(b) An expert panel, consisting of members that are qualified in a field that is the subject of the claim;

(c) An arbitration process which may be binding if agreed to by the parties to the claim;

(d) A mediator; or

(e) Any other method that best accomplishes the purpose of Section R23-26-1.

(8) Evaluation Process.

(a) No Formal Rules of Evidence. There shall be no formal rules of evidence but the persons evaluating the claim shall consider the relevancy, weight, and credibility of the evidence.

(b) Questions. Parties and the persons evaluating the claim have the right to ask questions of each other.

(c) Investigation and Documents. The persons evaluating the claim has the right to investigate and request documents, consider any claims or counterclaims of the division, may set deadlines for producing documents, and may meet with the parties involved with the claim together or separately as needed. Copies of submitted documents shall be provided to all parties.

(d) Failure to Cooperate. The failure of a party to cooperate with the investigation or provide requested documentation may be a consideration by the persons evaluating the claim in reaching the findings in its report.

(e) Record of the Proceeding. The persons evaluating the claim shall determine the extent to which formal minutes, transcripts, or recordings shall be made of the meetings or hearings and shall make copies available to all parties.

(f) Certification. The persons evaluating the claim may require the certification of documents provided.

(9) Timeframe for Persons Evaluation the Claim and Director's Determination. The claim shall be resolved no later than 60 days after the proper filing of the claim, which includes any extension of time approved under Subsection R23-26-5(5). The persons evaluating the claim may extend the time period for resolution of the claim by not to exceed 60 additional days for good cause. The time period may also be extended if the claimant agrees. The persons evaluating the claim shall issue to the parties a schedule providing the timeframe for the issuance of the following:

(a) a preliminary resolution report including the preliminary findings regarding the claim;

(b) the receipt of written comments concerning the preliminary resolution report. A copy of such comments must be delivered to the other parties to the claim within the same timeframe;

(c) a reply to written comments, which must also be delivered to the other parties to the claim within the same timeframe; and

(d) a final report and recommendation which must be delivered to the director and the other parties no later than seven days before the expiration of the required timeframe for resolution of the claim.

(10) Director's Final Resolution. The director shall consider the final recommendation and report and issue the final resolution of the claim, with any modifications, before the expiration of the required timeframe for resolution of the claim.

Notes

Utah Admin. Code R23-26-5

Amended by Utah State Bulletin Number 2023-04, effective 2/8/2023