7.1: Resolution of Contract Controversies
This section applies to controversies between the Town and a contractor and which arises under, or by virtue of, a contract between them. This includes, without limitation, controversies based upon breach of contract, mistake, misrepresentation, or other causes for contract modifications or rescission.
The Town Administrator, or authorized designee, is authorized to settle and resolve controversies, as described in this section whereby the contract amount or the amount of the controversy shall not exceed 5% of the total project cost, or an aggregate of up to $49,999.99, whichever is greater. Any contract controversy above this amount shall be referred to the Council.
Either the Town Administrator or the Council, as applicable, shall schedule and meet with the contractor to receive and review comments, which thereafter shall issue a decision to be placed in writing within 15 business days of the meeting. The decision shall state the reasons for the action taken and inform the contractor of other rights which may be available. A copy of the decision shall be sent via certified mail or otherwise hand-delivered, email, or fax, immediately to the contractor.
A contractor, having received the notice of decision, may appeal in writing to the Mayor, who shall then convene the full Council at a time and date established by the Mayor to receive and review the comments of the contractor. The Mayor shall issue the decision of Council, in writing, within 15 business days of the Council hearing. The decision shall state the reason for the action taken. A decision rendered shall be final and conclusive unless fraudulent. The appeal decision of the Mayor and Town Council is the final administrative review and the decision of the Town, and such decision can be appealed to the Circuit Courts of the State.