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B. ConsensusDocs 240, Standard Agreement Between Owner and Design Professional

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The ConsensusDocs 240, “Standard Agreement Between Owner and Design Professional,” is ConsensusDocs' most commonly used form of agreement between an owner and a designer. Article 9, “Dispute Mitigation and Resolution,” of the 240 offers the following dispute resolution procedures:

 In the event that project personnel from the design professional and owner cannot resolve a dispute, direct discussions should be conducted between the parties' representatives that possess the necessary authority to resolve the matter.

 If the parties' representatives are not able to resolve the matter within 5 business days of the first discussion, the parties' representatives shall inform senior executives of the parties that resolution could not be reached.

 Upon receipt of such notice, the senior executives of the parties shall meet within 5 business days to endeavor to resolve the matter. If the dispute remains unresolved after 15 business days from the date of the date of the first discussion, the parties shall submit the matter to dispute mitigation, if applicable, and dispute resolution procedures.

 The optional non-binding dispute mitigation procedures can either be a project neutral or a dispute review board. The project neutral or dispute review board shall issue nonbinding findings within 5 business days of a referral. If the matter remains unresolved after the findings, the parties shall submit the matter to binding dispute resolution.

 If direct discussions do not result in resolution and no dispute mitigation procedure is selected, the parties shall endeavor to resolve the matter by mediation. Mediation shall be convened within 30 business days of the matter first being discussed and shall conclude within 45 business days of the matter first being discussed. Either party may terminate the mediation at any time after the first session by written notice to the non-terminating party and mediator.

 The matter is resolved via binding dispute resolution (arbitration or litigation).

Fundamentals of Construction Claims

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