SUBSTITUTE - Item 495

RESOLUTION No. SUBSTITUTE 36318 AS AMENDED

Require all contractors and consultants that contract for construction or Professional Technical Expert contracts with the City of Portland to have established contract dispute resolution processes. (Resolution)

WHEREAS, businesses that contract with the City of Portland sometimes have disputes with their subcontractors or subconsultants. These disputes sometimes impact the services that they provide to the City;

WHEREAS, it would be beneficial if the City ensured the resolution of these disputes in order that the provision of services to the City continues in an efficient manner; and

WHEREAS, the City fails to require that construction and PTE consultants have clearly established dispute resolution procedures for disputes that arise between those consultants and subconsultants and between those prime construction contractors and subcontractors; and

WHEREAS, Council acknowledges that while each contract requires special consideration in resolving disputes, requiring contractors and consultants to establish clear processes does not bar the flexibility that allows special consideration; and

WHEREAS, ensuring that contractors and consultants establish processes for evaluating and resolving contact disputes is a responsible step for the City of Portland in encouraging the best possible business practices; and

WHEREAS, the Council deems that a clearly defined contract dispute resolution process is predictable, logical, fair and legal; and

NOW, THEREFORE BE IT RESOLVED, that the City of Portland finds it necessary to require all consultants and contractors, who seek City construction and Professional Technical Expert contracts and who intend to employ subcontractors or subconsultants, to establish written contract dispute resolution processes to resolve disputes that occur between the City’s consultants and subconsultants and between the City’s prime construction contractors and its subcontractors;

THEREFORE BE IT FURTHER RESOLVED, that the City of Portland finds that an appropriate contract dispute process should have a defined timeframe and that all City contracts over $50,000 should require mediation as part of the specified process; and

THEREFORE BE IT FURTHER RESOLVED, that requests for mediation services can be directed to the City's contracted mediation provider and the costs of the mediation are the responsibility of the parties to the dispute.

Adopted by Council:  May 18, 2005      GARY BLACKMER

               Auditor of the City of Portland

               By /S/ Susan Parsons

Commissioner Sam Adams          Deputy

Prepared by: Mary Jo Markle  

May 17, 2005

BACKING SHEET INFORMATION

AGENDA NO. S-495-2005

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. SUBSTITUTE 36318 AS AMENDED