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Section 24. 1. Generally. In case of dispute between the Parties, the Parties will attempt <br />to negotiate a resolution. If a dispute remains unresolved more than thirty (30) calendar days after <br />the commencement of negotiation, then the Parties shall pursue mediation. If any dispute remains <br />unresolved more than sixty (60) calendar days after the commencement of mediation, then either <br />Party may commence binding arbitration. No litigation will be commenced by either Party unless <br />all of the foregoing steps have been pursued to completion, if and to the fullest extent allowed by <br />law. <br />Section 24.2. Arbitration. All claims and disputes between ESCO and the Owner arising <br />out of, or relating to, this Contract, the breach thereof, or the work or services hereunder, shall be <br />decided by arbitration in accordance with the Construction Industry Arbitration Rules of the <br />American Arbitration Association. The prevailing party in any such arbitration shall be awarded <br />its reasonable attorneys' fees and costs, including expert witness expenses. The venue for any <br />arbitration to enforce the provisions of this Contract shall be brought in the county where the work <br />is performed. <br />Section 24.3. Consolidation and Joinder. An arbitration pursuant through this provision <br />may be joined with an arbitration involving the Owner, ESCO, their consultants, design <br />professionals, other contractors, subcontractors, or material or equipment suppliers. The Owner's <br />and ESCO's contracts with other contractors, subcontractors, design professionals, consultants, <br />and material and equipment suppliers shall require such joinder. <br />Section 24.4. Mediation. As a condition precedent to the hearing of any arbitration, <br />ESCO and the Owner shall submit any and all disputes between them to non-binding mediation <br />with the assistance of an experienced mediator. The parties shall each designate a representative <br />with full settlement authority who will participate in the mediation, provided however that any <br />settlement that requires approval of the Owner's governing body under its policies, shall be made <br />subject to such approval, which the Owner shall seek to obtain at the soonest available meeting of <br />the Owner's governing body. The parties shall bear equally all expenses, exclusive of attorneys' <br />fees, associated with the mediation. The venue for any mediation to enforce the provisions of this <br />Contract shall be brought the county where the work is performed. <br />Section 24.5. Waiver and Release of Liability for Consequential Damages. NEITHER <br />PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL, <br />INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, OR SIMILAR, DAMAGES OR <br />LOSSES, INCLUDING LOSS OF PROFITS, ARISING OUT OF OR RELATING TO THIS <br />AGREEMENT, WHETHER BASED IN CONTRACT OR TORT OR ANY OTHER THEORY, <br />EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. <br />SECTION 25. MISCELLANEOUS PROVISIONS <br />Section 25.1 Nonappropriation of Funds. It is understood and agreed that if the Owner <br />is a government entity then this Contract shall in no way or manner be construed so as to bind or <br />obligate either beyond the term of any particular appropriation of funds by the State's Legislature <br />as may exist from time to time. Notwithstanding any provision in this Contract to the contrary, <br />the Owner reserves the right to terminate this Contract in whole or in part if, in its judgment, the <br />Legislature fails, neglects, or refuses to appropriate sufficient funds as may be required for the <br />ESCO (McKinstry)/OWNER/PERFORMANCE CONTRACT 22 <br />