Dispute resolution process -- Penalties for fraud or bad faith claim.

Utah Code § 63A-5b-606, under Part 63A-5b-6: Design and Construction.

Utah Code § 63A-5b-606

63A-5b-606. Dispute resolution process -- Penalties for fraud or bad faith claim.

(1) In accordance with, the director shall make rules for the division establishing a process for resolving disputes involved with contracts under the division's procurement authority. Title 63G, Chapter 3, Utah Administrative Rulemaking Act

(2) The director shall consider, and the rules may include: requirements regarding preliminary resolution efforts between the parties directly involved with the dispute; requirements for the filing of a claim, including notification, time frames, and documentation; identification of the types of costs eligible for allocation and a method for allocating costs among the parties to the dispute; a required time period, not to exceed 60 days, for the resolution of the claim; a provision for an independent hearing officer, panel, or arbitrator to extend the time period for resolution of the claim by not to exceed 60 additional days for good cause; a provision for the extension of required time periods if the claimant agrees; requirements that decisions be issued in writing; provisions for an administrative appeal of a decision; provisions for the timely payment of claims after resolution of the dispute, including any appeals; a requirement that the final determination resulting from the dispute resolution process provided for in the rules is a final agency action subject to judicial review as provided in Sectionsand; 63G-4-401 63G-4-402 a requirement that a claim or dispute that does not include a monetary claim against the division or an agent of the division is not limited to the dispute resolution process provided for in this section; requirements for claims and disputes to be eligible for the dispute resolution process under this section; the use of an independent hearing officer or panel or the use of arbitration or mediation; and the circumstances under which a subcontractor may file a claim directly with the division.

(3) A person pursuing a claim under the process established as provided in this section: is bound by the decision reached under this process, subject to any modification of the decision on appeal; and may not pursue a claim, protest, or dispute under the dispute resolution process established in. Title 63G, Chapter 6a, Utah Procurement Code

(4) A fraudulent misrepresentation made by or bad faith claim pursued by a contractor, subcontractor, or supplier, may be grounds for: the director to suspend or debar the contractor, subcontractor, or supplier; or the contractor, subcontractor, or supplier to be disciplined by the Division of Professional and Occupational Licensing.