PRINTER'S NO. 393
No. 378 Session of 1997
INTRODUCED BY STOUT, MUSTO, SCHWARTZ AND MELLOW,
FEBRUARY 5, 1997
REFERRED TO STATE GOVERNMENT, FEBRUARY 5, 1997
AN ACT
1 Amending the act of November 26, 1978 (P.L.1309, No.317),
2 entitled "An act regulating the awarding and execution of
3 certain public contracts; providing for contract provisions
4 relating to the retention, interest, and payment of funds
5 payable under the contracts; and repealing inconsistent
6 acts," further providing for arbitration of disputes.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 9 of the act of November 26, 1978
10 (P.L.1309, No.317), referred to as the Public Works Contract
11 Regulation Law, is amended to read:
12 Section 9. Provisions for arbitration.
13 (a) If a dispute should arise between the contractor and the
14 contracting body over [the] a payment [of such retainages and
15 final payment] or payments, then such dispute shall be
16 arbitrated [under the applicable terms of the contract. If the
17 contract contains no such provisions for arbitration, then both
18 parties may mutually agree to arbitrate the dispute] through the
19 construction industry arbitration panel of the American
1 Arbitration Association Rules then obtaining[, or, in accordance
2 with the act of April 25, 1927 (P.L.381, No.248), referred to as
3 the Arbitration by Contract Law]. Initiation of arbitration
4 proceedings by either party shall bind the other to participate
5 and to comply with the decision of the arbitrating party or
6 arbitrating parties. All contract provisions for dispute
7 resolution shall be subordinate to the right of either party to
8 initiate arbitration proceedings the results of which shall then
9 be binding upon the other party. In any event, either party
10 shall have the right of appeal from any decision and award as
11 provided by law.
12 (b) In the event any dispute between the owner and
13 contractor is to be appealed to Commonwealth Court for
14 litigation, no contract provision shall limit the right of the
15 owner or contractor to full access to the courts as provided by
16 law.
17 (c) Nothing in this section shall be deemed to deny the
18 contractor or the contracting body the right of dispute
19 resolution through the Board of Claims under the act of May 20,
20 1937 (P.L.728, No.193), referred to as the Board of Claims Act.
21 Payment claims before the Commonwealth or the Department of
22 Transportation shall be filed before the Board of Claims and
23 shall not be subject to arbitration under other provisions of
24 this section.
25 Section 2. This act shall take effect in 60 days.
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