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Section 3: Payment in Settlements of Disputes and Claims

In accordance with best practices involving good partnering and dispute resolution concepts, the CCC encourages Districts to work with the Contractor to resolve a dispute or claim at the District level during the course of the contract. In this case, the District processes payment for resolution through SiteManager following the established CO process. The DE’s signature is required on all dispute resolution COs. These COs are not eligible for federal participation; Reason code, 3A “Dispute Resolution,” must be used.

Districts may resolve a claim up to the date and time of the CCC meeting. If the Control-Section-Job (CSJ) has not been closed, the District can process payment by CO. In settling the claim, the District will need to process a supplemental estimate (SE) in SiteManager. A CO needs to be created, including language stating, “This payment settles all claims pertaining to this project.” With the CO, a unique change order item needs to be added as a lump sum, with DOL as a unit of measure. The item’s supplemental description will state “paid by supplemental estimate.” Upon obtaining the Contractor’s signature on the CO, the District can process the SE.

For processing the SE, refer to the SiteManager Contract Administration Manual, Chapter 7 “Contractor Payments,” Section 3 “Estimate Process,” Table 7-3.

If the CSJ has been closed, the District must submit Form 2557, “Billing Worksheet,” to the Financial Management Division (FIN). Claim payments are not eligible for federal participation and must be coded appropriately.

Once the Department and the contractor enter into a CCC meeting, the District can no longer negotiate, resolve, or process payment for the claim. The CCC will make the necessary arrangements with FIN for payment of claims resolved by a CCC meeting. Districts have no further procedural responsibility regarding resolution of claims heard by the CCC; however, any funds disbursed will come from the District’s budget allocation.

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