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Ohio Department of Transportation Dispute Review Boards (DRB)

Ohio Department of Transportation Dispute Review Boards (DRB). Megan Blackford, P.E., Esq. Construction Claims Administrator. Background. System Data 35 th in geographical size 7 th largest highway network 7 th in population 5 th in traffic volume. 4 th in the # of interstate miles

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Ohio Department of Transportation Dispute Review Boards (DRB)

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  1. Ohio Department of Transportation Dispute Review Boards (DRB) Megan Blackford, P.E., Esq. Construction Claims Administrator

  2. Background • System Data • 35th in geographical size • 7th largest highway network • 7th in population • 5th in traffic volume • 4th in the # of interstate miles • 4th in value of freight traffic • 2nd in the number of bridges • Construction Program

  3. Construction Claim Data • ≈ 10 claims per year average • 2006 = 16 claims to date… • $15 k - $12 m range in dollar amounts • $8.25 m largest settlement to date • Only 1 claim filed in Ohio Court of Claims since 2000 • Settled at mediation prior to trial

  4. Dispute Resolution Processes • 2 Dispute Resolution processes specified by Proposal Notes • Dispute Resolution and Administrative Claims Process • Default Process • Dispute Review Board (DRB) • Selected projects over $20 million and/or • of a highly technical nature •  specialized note • Both processes allow for… • Mediation • Binding Arbitration

  5. Dispute Resolution Processes • 3 Step Dispute Resolution and Administrative Claims Process • Step 1 ► On-Site Determination • Step 2 ► District Dispute Resolution Committee (DDRC) • Step 3 ► Director’s Claims Board • 3 Step Dispute Review Board Process (DRB) • Step 1 and 2 ► same as above • Step 3 ► Appeal to the DRB

  6. Projects w/DRBs Current (7) • 2002 • Pomeroy/Mason Bridge - $52 m • 2003 • Maumee River Crossing – $232 m • 2004 • NExT - $120 m • 2005 • I-70/75 Interchange Phase 3 – $48 m • I-70 Lane Add - $60 m • 2006 • Main Street Bridge - $44 m • Fulton Road Bridge – $46 m

  7. Projects w/DRBs Future… • 2006 • I-71/76 Interchange - $88 M • I-275 - $180 M • 2007 and on… • Cleveland Innerbelt • I-70/75 Split • I-75 in Dayton • Etc..

  8. Dispute Review Board Process Evolving… • Establish prior to pre-con & partnering meetings • Detailed, step-by-step timeframes • Roster of Neutrals • List on web • Resumes/CVs on file (available upon request) • Selection of Chair • 2 members select the Chair from lists of candidates provided by both Contractor and ODOT • ODOT prefers lawyer • Payment • ODOT includes a pay item with fixed $ amount in the Contract for the DRB

  9. Dispute Review Board Process Evolving… • ALL claims go to DRB • Used to be threshold of $100k • Flexible • Requested DRB to review and analyze claim for entitlement and damages • DRB gathered documentation, interviewed both sides, retained consultant, review escrowed bid documents • NO position papers • Recommendation vs. Binding Decision • Under Contract DRB issues recommendation… • ODOT prefers binding and approaches Contractor • 4 out of 6 claims thus far • SMDRB

  10. Claims • NExT Project: • MSE Wall Backfill Resistivity Testing. • Amount of claim = $1,584,000 • Recommendation = Each party shares the responsibility. (i.e. compromise or face potential litigation) • MSE Wall Design Criteria. • Amount of claim = $220,220.97 • Recommendation = Ruled in favor of the Contractor. ODOT and the Contractor agreed upon damages of $269,267.90 . • Multiple Project Impacts. • Amount of claim = approx. $12 m • Recommendation = Contractor entitled to approx. $2.4 m.

  11. Claims • Maumee River Project: • Discrepancy in concrete quantity for precast segmental concrete. • Amount of claim = $587,400 • Decision = $0 - Ruled in favor of ODOT. • Pomeroy/Mason Bridge Project: • Tower Leg Concrete. • Amount of claim = Entitlement only • Decision = ODOT 25% responsible.

  12. Thank You! Any questions?

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