Dispute Resolution in Contracting

To prevent disputes and ensure all parties meet their contractual obligations, statement of work should specify and clarify deliverables, tasks, scope, timelines, etc. before a contract is signed. That will help you avoid confusion and misunderstandings that may lead to disputes. Proper record keeping is vital for clarification, audit or termination purposes. 

When managing a contract, disputes may arise between parties to the contract. Disputes must be handled expeditiously. If the CA and contractor cannot resolve the dispute themselves, the next step would be to involve senior level contracting authorities (from both parties) to assist. 

Applicable only to contracts valued at more than $30,000:  If the senior level contracting authorities (from both parties) are unable to resolve a dispute within 30 days, the matter may then be referred to mediation by a mutually acceptable mediator. A written notice by either party must be sent demanding mediation. A mediator will be chosen by both parties within 45 days after the written notice was issued. 

All mediation cost will be born by the respective division/base/wing/unit. 

Contract for services templates contain appropriate dispute resolution language. Contracting authorities must select an option appropriate to their service and dollar value.

At any point in the process, contracting authorities may contact NPP Procurement and Contracts Officer for information and/or assistance. If determined necessary, legal advice could be provided.