STATEMENT TO

[First Reprint]

SENATE, No. 913

with Senate Floor Amendments

(Proposed By Senator KYRILLOS)

ADOPTED: DECEMBER 15, 1997

      This amendment would require all construction contract documents subject to the requirements of the "Local Public Contracts Law," P.L.1971, c.198, (C.40A:11-1 et seq.), to provide for the resolution of disputes pursuant to an alternative dispute resolution practice prior to submitting such disputes to a court for adjudication. Examples of alternative dispute resolution practices are mediation, binding arbitration and non-binding arbitration. These alternative dispute resolution provisions would not prevent the contracting unit from seeking injunctive or declaratory relief in court at any time.

      The alternative dispute resolution procedures would not be applicable to the bid, award and formation of contracts; they would be applicable only to disputes arising after a contract has been executed. The reason for this limitation is that disputes that arise in the bidding, award or subcontractor naming process, are generally questions of law that can be better handled by the courts in an expedited manner through the application of a well-settled body of case law.