Ala. Admin. Code r. 355-4-6-.03

Current through Register Vol. 43, No. 1, October 31, 2024

Section 355-4-6-.03 - Authority To Resolve Contract And Breach Of Contract Controversies

(1) General. It is the State's policy to try to resolve all controversies by mutual agreement without litigation. In the event of any dispute between the State and a contractor, senior officials of both parties shall meet and engage in a good faith attempt to resolve the dispute. Should that effort fail, and the dispute involves the payment of money, a contractor's sole remedy is the filing of a claim with the Board of Adjustment of the State of Alabama. For all other disputes arising under the terms of a contract which are not resolved by negotiation, the dispute will be resolved by the Chief Procurement Officer or head of a Purchasing Agency and his or her decision on the dispute will be final. The procedures to be followed for the resolution of disputes shall be prescribed by the Chief Procurement Officer and will depend on the complexity of the matter.

(2) Chief Procurement Officer or Head of a Purchasing Agency's Decision.

(a) Before issuing a final decision, the Chief Procurement Officer or head of a Purchasing Agency shall:

1. review the facts pertinent to the controversy; and

2. secure any necessary assistance from legal, fiscal, and other advisors.

(b) Final Decision. The Chief Procurement Officer or head of a Purchasing Agency shall immediately furnish a copy of the decision to the contractor by a method that provides evidence of receipt, and include in the decision:

1. a description of the controversy;

2. a reference to pertinent contract provisions;

3. a statement of the factual areas of agreement or disagreement; and

4. a statement of the Chief Procurement Officer or head of a Purchasing Agency's decision, with supporting rationale.

(c) Failure to Timely Issue Final Decision. If the Chief Procurement Officer or head of a Purchasing Agency does not issue a written decision within 120 days, or within such longer period as may be agreed upon by the parties, then the contractor may proceed as if an adverse decision had been received.

(d) Payments of Amounts Found Due. The amount determined payable pursuant to the decision, less any portion already paid, should be paid without delay. Such payment shall be without prejudice to the rights of either party.

(3) Controversies Involving State Claims Against the Contractor. All controversies involving claims asserted by the State against a contractor which cannot be resolved by mutual agreement shall be the subject of a decision by the Chief Procurement Officer or the head of a Purchasing Agency, as applicable.

(4) Disputes Clause. All contracts entered into under the State Procurement Code shall include a statement that disputes shall be resolved by utilizing the dispute resolution procedures set forth in this Rule.

Ala. Admin. Code r. 355-4-6-.03

Adopted by Alabama Administrative Monthly Volume XL, Issue No. 09, June 30, 2022, eff. 8/14/2022; operative 10/1/2022.

Author: Department of Finance, Legal Division

Authority:Code of Ala. 1975, § 41-4-62.