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B. ConsensusDocs 702 and 703, Purchase Orders

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ConsensusDocs has two purchase order forms, one for commodity goods (ConsensusDocs 702, which includes a 702.1 attachment) and the other for non-commodity goods (ConsensusDocs 703). Both forms list the parties as the “Buyer” and “Seller” and unlike the AIA form, the ConsensusDocs' forms provide detailed dispute resolution procedures. The 702 lists the following dispute resolution procedures:

 In the event that a dispute arises, 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 submit the matter to binding dispute resolution, which can be litigation or arbitration depending on what the parties selected on the purchase order form.

The 703 form adds a mediation requirement before binding dispute resolution:

 In the event that a dispute arises, direct discussions should be conducted between the parties' representatives that possess the necessary authority to resolve the matter within 5 business days of the first discussion.

 If the parties fail to resolve the matter through direct discussions, the dispute shall be submitted to mediation pursuant to AAA rules. The parties shall select a mediator within 15 business days of the request for mediation.

 If the matter is unresolved after mediation, the parties' representatives shall submit the matter to binding dispute resolution, which can be litigation or arbitration depending on what the parties selected on the purchase order form.

Fundamentals of Construction Claims

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