General Condition (GC) 8 – Dispute Resolution – Architectural and/or Engineering Services

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Archived - Standard Acquisition Clauses and Conditions Manual | CanadaBuys

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Legal text for SACC item

  1. In the event of a disagreement regarding any aspect of the Services or any instructions given under the Agreement:
    1. the Consultant may give a notice of disagreement to the Departmental Representative. Such notice shall be promptly given and contain the particulars of the disagreement, any changes in time or amounts claimed, and reference to the relevant clauses of the Agreement;
    2. the Consultant shall continue to perform the Services in accordance with the instructions of the Departmental Representative; and
    3. the Consultant and the Departmental Representative shall attempt to resolve the disagreement by negotiations conducted in good faith. The negotiations shall be conducted, first, at the level of the Consultant's project representative and the Departmental Representative and, secondly and if necessary, at the level of a principal of the Consultant firm and a senior departmental manager.
  2. The Consultant's continued performance of the Services in accordance with the instructions of the Departmental Representative shall not jeopardize the legal position of the Consultant in any disagreement.
  3. If it was subsequently agreed or determined that the instructions given were in error or contrary to the Agreement, Canada shall pay the Consultant those fees the Consultant shall have earned as a result of the change(s) in the Services provided, together with those reasonable disbursements arising from the change(s) and which have been authorized by the Departmental Representative.
  4. The fees mentioned in subsection 3 shall be calculated in accordance with the Terms of Payment set out in the Agreement.
  5. If the disagreement is not settled, the Consultant may make a request to the Departmental Representative for a written departmental decision and the Departmental Representative shall give notice of the departmental decision within fourteen (14) days of receiving the request, setting out the particulars of the response and any relevant clauses of the Agreement.
  6. Within fourteen (14) days of receipt of the written departmental decision, the Consultant shall notify the Departmental Representative if the Consultant accepts or rejects the decision.
  7. If the Consultant rejects the departmental decision, the Consultant, by notice may refer the disagreement to Mediation.
  8. If the disagreement is referred to Mediation, the Mediation shall be conducted with the assistance of a skilled and experienced mediator chosen by the Consultant from a list of mediators proposed by Canada, and departmental Mediation procedures shall be used unless the parties agree otherwise.
  9. Negotiations conducted under the Agreement, including those conducted during Mediation, shall be without prejudice.
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