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Proposed procurement regs to settle disputes over construction projects
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Posted on Jul 02 2004
By Agnes E. Donato
Reporter
The Department of Finance wants existing procurement regulations amended to provide a process for the resolution of disputes that may arise between the Department of Public Works and other agencies over construction projects.
In a public notice, the department expressed its intent to adopt the amendments on an emergency basis—less than the normal 30 days notice—citing the urgent need for such a process.
“[These] disputes [between DPW and expenditure authorities] disrupt related construction schedules, affect existing and future construction funding, and delay meeting critical public needs, which these projects are designed to address,” the public notice read.
Richard Cody, director of the DPW Technical Services Division, welcomed the changes, saying the new rules would clarify the procedure in case there is disagreement between the department and any agency for which DPW serves as contracting agency.
DPW and the Public School System figured in a couple of lawsuits when they had a dispute over a PSS construction project.
“I think [the new rules] are a good thing. We don’t have to go to court, because there is a procedure we can follow to reach a final decision, if there’s a difference and an agreement cannot be reached,” Cody said.
Under the proposed amendments, any dispute arising between DPW and an agency with expenditure authority involving construction projects should be submitted to the director of procurement and supply for resolution.
“[The] purpose of the dispute resolution process is to resolve difference between DPW and the expenditure authority, and to avoid interference with timely project completion,” the amendments said.
Only the DPW secretary or the chief administrative officer of the expenditure authority may submit a complaint for review by the Division of Procurement and Supply.
The division’s decision on the complaint should be final and binding on both parties.
