Common use of Attempt to Resolve Alleged Design Error with Consultant Clause in Contracts

Attempt to Resolve Alleged Design Error with Consultant. After the meeting(s) with the consultant have been completed regarding the consultant’s alleged design error(s), there are three possible scenarios: • It is determined via mutual agreement that there is not a consultant design error(s). If this is the case, then the process will not proceed beyond this point. • It is determined via mutual agreement that a consultant design error(s) occurred. If this is the case, then the Director of Public Works or AGENCY Engineer, or their representatives, negotiate a settlement with the CONSULTANT. The settlement would be paid to the agency or the amount would be reducedfrom the CONSULTANT’S agreement with the AGENCY for the services on the project in which the design error took place. • There is not a mutual agreement regarding the alleged consultant design error(s). The CONSULTANT may request that the alleged design error(s) issue be forwarded to the Director of Public Works or AGENCY Engineer for review. If the Director of Public Works or AGENCY Engineer, after review with their legalcounsel, is not able to reach mutual agreement with the consultant, proceed to arbitration or litigation. The purpose of this exhibit is to describe a procedure regarding claim(s) on a consultant agreement. The following procedures should only be utilized on consultant claims greater than $1,000. If the consultant’s claim(s) total a $1,000 or less, it would not be cost effective to proceed through the outlined steps. It is suggested that the Director of Public Works or AGENCY Engineer negotiate a fair and reasonable price for the consultant’s claim(s) that total $1,000 or less. This exhibit will outline the procedures to be followed by the CONSULTANT and the AGENCY to consider a potential claim by the CONSULTANT.