WPCB ؎4< 44Ӕ1g#X?->&4|{!L^MP-@%S|w}RXY(el0!cJbvpL@?SΙ:զ:zv~#M]n=. {*C2RRrR5 pfPi ;!=M6E[{vvbZ"OUDco] p!nB;"$ E5TPi )ٯP⨹P)lWy-S #bN)Ԥw)Q^j|)Z|;)c< s*b_`g)}vr!a=i߿0ucxZO| r^ r82&J Z\YVC8GӮL`gU.p 9lyp/=Eͩ mӘOU-d U 0e ( 0gF  0es 01g?? 0DGEf 0M}fa 0 0 0jMOMS 0LWM 0y 0D  0d 0'cF D5 B (N# 1u% 0y 060 D3f B D3 B D3 B9 D3V B D1 D5 B*  D36 B*i 72 0w 0< 0 0f C C4 CN Ch C C C C C^  DE CU Co 0 0P 0+!"($ 0D(F) B*, 1 -a- 72/f)0a+0 0?0 01 01 022 03 C4 04 0o5 0B6a7 0&7 07 08 09 0H: 0#; 0; 0< 0= 0q> 0=? 0@ 0@ 0<AU>AAAAAA 1 B 72BHP LaserJet 5,,,,0x9 Z6Times New Roman RegularX($ \3T<<63|x UA, B,Level 1Level 2Level 3Level 4Level 54#)2Quick A.   .0  a, b, c,Level 1Level 2Level 3Level 4Level 56#*&4Quick a.    .0  1, 2, 3,Level 1Level 2Level 3Level 4Level 54#*2Quick 1.  .0 6#)4Quick a)    )0  (3$ !  2G+J 0_level1  X /%4 4 <DL/23  ..  2( 4 <DL2  TABLE B2D+J 0_level2   ," <DL,23  ..  2( 4 <DL2  2A+J 0_level3   ) <DL)23  ..  2( 4 <DL2  2>+J 0_level4  ` &<<DL&23  ..  2( 4 <DL2  >b$Large Circle0 (;21$ !  ޵XX  0  (#$  0  2;+J 0_level5   #DL#23  ..  2( 4 <DL2  (;3$2#  0  .3  0  (((()!dxdx d3#37=CIQYag1.a.i.(1)(a)(i)1)a)28+J 0_level6    DL 23  ..  2( 4 <DL2   #1$޵XX  4   _ԀMARTAresidentEngineersManual,Section5.17ContractorClaims.&$""0  0000'dxd  d2222'dxdP Pd4444'dxd d6666'dxd d22)! dxdx9999)!dxdx&0 d d;;;;'dxd&P d d+i)(O;$0  2#  a  .3  0` (#(#(b$0  0` (#(#2#   .3  0 ` (#` (#(xir$0  0` (#(#0 ` (#` (#2#(  0  )3  0 (# (#($0  0` (#(#0 ` (#` (#0 (# (#2#(  a  )3  0h(#(#dd2d?@NOPpGaekosw{Bullet ListBullets Lista. W #1$޵XX  3   _ԀAdditionally,wehavenotedthatrequiringanappealtobefiledwithinfivedaysof"theviolation"yetalso  requiringprotestorstoextinguishtheirlocalremediesbeforefilingwithFTAledtosomeconfusion.FTAhas t attemptedtoclarifythisstandardbystartingtheprotestor'sclockwhenitreceivesactualorconstructivenoticeofan 8 adversedecisionorthatagranteefailedtohaveorfollowitsproceduresorreviewacomplaint.VS TABLE C25+J 0_level7  h DDL23  ..  2( 4 <DL2  22+J 0_level8   L23  ..  2( 4 <DL2  2/+J 0_level9    L23  ..  2( 4 <DL2  2GJ 0_levsl1  X /%4 4 <DL/23  Ԁ  2( 4 <DL2  2DJ 0_levsl2   ," <DL,23  Ԁ  2( 4 <DL2   d2AJ 0_levsl3   ) <DL)23  Ԁ  2( 4 <DL2  2>J 0_levsl4  ` &<<DL&23  Ԁ  2( 4 <DL2  2;J 0_levsl5   #DL#23  Ԁ  2( 4 <DL2  TABLE A28J 0_levsl6    DL 23  Ԁ  2( 4 <DL2  25J 0_levsl7  h DDL23  Ԁ  2( 4 <DL2  22J 0_levsl8   L23  Ԁ  2( 4 <DL2  2/J 0_levsl9    L23  Ԁ  2( 4 <DL2  2GJ 0_levnl1  X /%4 4 <DL/23   2( 4 <DL2  2DJ 0_levnl2   ," <DL,23   2( 4 <DL2  2AJ 0_levnl3   ) <DL)23   2( 4 <DL2  2>J 0_levnl4  ` &<<DL&23   2( 4 <DL2  2;J 0_levnl5   #DL#23   2( 4 <DL2  28J 0_levnl6    DL 23   2( 4 <DL2  25J 0_levnl7  h DDL23   2( 4 <DL2  22J 0_levnl8   L23   2( 4 <DL2  2/J 0_levnl9    L23   2( 4 <DL2  <:Default Para\  `&Times New Roman(5hCEKQW]cioAutoList1a.a.a.a.a.a.a.a.za. !  _Q  Chapter11      11Disputes    11.1Protests(6/03)     11.2Claims,GrievancesandOtherDisputeswithContractors(6/99)    11.1 PROTESTS  ] t *(ddd Xdd Xdd X(#(#,xdd +  9P 9P  REQUIREMENT    ',lXX'7.l.ofFTACircular4220.1Estates: 4  ޵XXX-X޵0  0l""WrittenProtestProcedures.Granteesshallhavewrittenprotestprocedurestohandle   andresolvedisputesrelatingtotheirprocurementsandshallinallinstancesdisclose   informationregardingproteststoFTA.R $#  1      Allprotestdecisionsmustbeinwriting.A   protestermustexhaustalladministrativeremedieswiththegranteebeforepursuinga  protestwithFTA.}l"l" ޵XX-X-X޵0  0l""ReviewsofprotestsbyFTAwillbelimitedto:(1)agrantee'sfailuretohaveorfollow -D itsprotestprocedures,oritsfailuretoreviewacomplaintorprotest;or(2)violationsof 0 Federallaworregulation.T $#  2      l"l" ޵XX-X-X޵0  0l""AnappealtoFTAmustbereceivedbythecognizantFTAregionalorHeadquarters  Officewithinfive(5)workingdaysofthedatetheprotesterlearnedorshouldhave  learnedofanadversedecisionbythegranteeorotherbasisofappealtoFTA.W8  $#  3      #l"l"  #  DISCUSSION  ЇYoucanadoptprotestproceduresthatwillprovideanoutletforsupplierconcernsthat  cannotbeinformallyresolved.Theseprocedureswillhelpyouresolvetheseconcernsona  schedulethatminimizestheultimatecosttoyouragency.Considerincludingthe  proceduresorkeyrequirementsoftheproceduresinyoursolicitations.Ifyouadoptand   adheretotheseprocedures,FTAsinvolvementwillbeverylimited.     Purpose q   Aprotestisapotentialbiddersorcontractorsremedyforcorrectingaperceivedwronginthe I` procurementprocess.Aprotestmustbeacceptedandreviewedwiththeunderstandingthat 5L  integrityoftheprocurementprocessaswellastheprocurementofficemaybeatstake. !8  Ifanofferordoesnothaveasatisfactorymeansofresolvinghis/herdisagreementwithyou,   his/hereffortstoobtainsatisfaction,includingthepossibilityoflitigation,maysubstantially   interferewiththeprocurementprocessandbecostlytotheagency.Oneaspectoftheprotest   processisamacknowledgmentthatpublicprocurementofficialsaremakingmajorpublic   decisions,canconceivablyerronoccasion,andthatthereshouldbesomeprocessshortof  litigationtoremedysuchanderror.ThesuccessofthisprocessenablesFTAtodischargeits  responsibilitywhileseldombecomingdirectlyinvolvedinaprocurementdispute.   BestPractices Yp  Therearethreebasictypesofprotests,basedonthetimeintheprocurementcyclewhenthey 1H occur. 4  V&=>?@NOPS(p3+"&3"   x &3T23  0    Aprebidorsolicitationphaseprotestisreceivedpriortothebidopeningorproposaldue   date.&3T݌(#(# Ќ  "&3"   x &323  0    Apreawardprotestisaprotestagainstmakinganawardandisreceivedafterreceiptof   proposalsorbids,butbeforeawardofacontract.&3݌!(#(# Ќ  "&3"   x &323  0    Apostawardprotestisaprotestreceivedafterawardofacontract.&3)݌}#(#(# Ќ  ContentofProceduresToensurethatprotestsarereceivedandprocessedeffectively,all U%l! granteesmusthaveadequatewrittenbidprotestprocedures.Itisrecommendedthatthese A&X" proceduresbeincludedorreferencedinthesolicitationdocument.Iftheyarereferenced, -'D # informationmustbeincludedonhowacopyoftheproceduresmaybeacquiredbyanyinterested (0!$ party.Whentheproceduresarerequested,theyshouldbeprovidedimmediately.Thewritten )"% procedurestypicallyaddressthefollowingelements:eXX- )#& #X-Xed#"&3"   x &323  0    Differenceinproceduresforprebid,preawardandpostawardprotests;eXX-&3݌+$((#(# Ќ  #X-Xe#"&3"   x &3 23  0    Specificdeadlines(inworkingdays)forfilingaprotest,filingarequestfor -&* reconsiderationandforthegranteesresponsetoaprotest;&3 C݌.'+(#(# Ќ   y/(, "&3"   x &323  0    Specificcontentsofaprotest(nameofprotester,solicitation/contractnumberor  description,statementofgroundsforprotest);&3݌(#(# Ќ  "&3"   x &323  0    Locationwhereprotestsaretobefiled;&3݌ (#(# Ќ  "&3"   x &323  0    Statementthatthegranteewillrespond,indetail,toeachsubstantiveissueraisedinthe   protest,&3݌q (#(# Ќ  "&3"   x &323  0    Identificationoftheresponsibleofficialwhohastheauthoritytomakethefinal I` determination;&3<݌5L (#(# Ќ  "&3 "   x &3;23  0    Statementthatthegranteesdeterminationwillbefinal;&3;t݌ $ (#(# Ќ  "&3 "  ޵XX- x &3: 23  0    #X-X޵g #StatementthatFTAwillonlyentertainaprotestthatallegesthegranteefailedtofollow   theirprotestproceduresandthatsuchaprotestmustbefiledinaccordancewiththe   Circular;and&3: ݌ (#(# Ќ  "&3 "  ޵XX- x &3&"23  0    #X-X޵S"#Allowanceforrequestforreconsideration(ifdatabecomesavailablethatwasnot  previouslyknown,ortherehasbeenanerroroflaworregulation).&3&"~"݌(#(# Ќ  EffectonPendingActions󀄀Oneoftheconcernsthatmayariseinadministeringaprotestisthe Yp affectontheawardorcontract.Thedecisiontoopenabidortoawardacontractpriorto E\ resolutionofaprotestrestswithyou.However,shouldthegroundsfortheprotestbefoundvalid 1H byFTA,FTAmaychoosenottoparticipateinthecontract.Youmustweighthisriskagainstthe 4 costtotheagencyforterminatingthecontractorprovidingalternativefunding.     11.2CLAIMS,GRIEVANCESANDOTHERDISPUTESWITHCONTRACTORS   *l(eddxdd x((#(#l,xdd +      REQUIREMENT  !4 FTACircular4220.1Eparagraph7.kreadsasfollows: "   k.0 l ResponsibilityforSettlementofContractIssues/Disputes.Granteesalonewillbe u$  responsibleinaccordancewithgoodadministrativepracticeandsoundbusiness a%x! judgementforthesettlementofallcontractualandadministrativeissuesarisingoutof M&d" procurements.Theseissuesinclude,butarenotlimitedto,sourceevaluation,protests, 9'P # disputes,andclaims.Thesestandardsdonotrelievethegranteeofanycontractual %(1  .04(#(#  Whenthenegotiatedsettlementexceeds$100,00.Thiswouldincludeany   situationwhenthegranteeiswaivingliquidateddamagesinanamountover  $100,000.TheGovernmenthasavestedinterestintherecoveryofliquidated  damages,andthegeneralruleisthatliquidateddamagesmaynotbewaived.  However,granteesmay setofftheliquidateddamagesagainstsomeother m validclaimofthecontractor,butFTAconcurrenceisnecessaryinany setoff Yp action.*h>>یE\4(#4(# Ќ  *  0  *A2  .04(#(#  Wheninsufficientfundsremainintheapprovedgranttocoverthesettlement. 4 TheGovernmentcannotbeobligatedtopaythegranteeanamountthatwould    exceedthefundsobligatedonthegrant.Todosowouldbeaviolationofthe   AntiDeficiencyAct.*AAی4(#4(# Ќ  *  6,XX4` X,X, X60  *C3  .04(#(#  WhereaspecialFederalinterestisdeclaredbecauseofprogrammanagement   concerns,possiblemismanagement,impropriety,wasteorfraud.FTAcould ! notifythegranteethatitwishestoreviewandconcurinanyparticular " claim/disputesettlementbasedonthecriteriastatedhereinsection7b(4).Even }# morebroadly,FTAmayinitiateareviewofgranteeclaimsunderaparticular i$  grantwheneveritdeemsareviewtobenecessary5010.1C,Section7b(5). *C+DیU%l!4(#4(# Ќ     4  ` *  0  **G4  .04(#(#  TherequirementforFTAconcurrencealsoappliestoanysettlementarrivedat -'D # byarbitration,mediation,etc.Granteesmustadvisetheircontractorsthatany (0!$ decisionsreachedthrougharbitrationmustbereviewedandapprovedbythe )"% FTA.Thereasonforthisisthatanarbitratormayrequirethegranteetopay )#& forsomethingthatisineligibleforfunding(unallowablecost)underthetermsof *#' thegrant.Thearbitratormayalsorequirethegranteetopayitscontractoran +$( amountthatwouldcausethefundinglimitofthegranttobeexceeded,thus ,%) violatingtheAntiDeficiencyAct. **GQGی -&*4(#4(# Ќ  ! ! +(#3p V&=>?@NOPS *  0  *xK5  .04(#(#  Therearecertainsituationsthatgranteesmustseektoavoidbecausetheymay  resultinthegranteebeingliabletoitscontractorbutunabletorecoverfrom  FTA.ThesecircumstancesmaygiverisetoaFTAreview,throughitsProject   ManagementOfficesandotheroversightreviews,beforeFTAwillparticipatein   thecostofsettlingtheclaim/dispute.Ifgranteesencounteranyofthese   situations,andtheybelievetheclaimtobelegitimate,theyshouldbepreparedto q  supportachallengebyFTA.Ifthegranteessclaimrecordssubstantiatethat ] t reasonableandprudentmeasuresweretakentopreventoroffsetthecauses I` underlyingtheclaim,FTAmayparticipateinthenegotiatedcost[(5010.1C, 5L  Section7b(3)].Thetypesofsituationsinquestionarethosewherethegrantee !8  hasfailedto:*xKKی $ 4(#4(# Ќ  9,X, X,XX4` X99,X4` X,X, X90  04(#(# a)0` 4(#4(#obtainclearaccesstoallneededrightofwaypriortoawardofthe   constructioncontract; ` (#` (#    )     4 )֒Q b  )0 `   executeallrequiredutilityagreementsintimetoassumeuninterrupted  constructionprogress;)֒QQ ی` (#` (# Ќ  )     4 )R c  )0 `   undertakecomprehensiveprojectplanningandschedulingtoachieveproper m coordinationamongcontractors;)R S یYp` (#` (# Ќ  )     4 ))T d  )0 `   informpotentialcontractorsofallavailablegeotechnicalinformationon 1H subsurfaceconditions;))T\T ی4` (#` (# Ќ  )     4 )xU e  )0 `   assurethatallgranteefurnishedmaterialsarecompatiblewithcontractor   projectfacilitiesand/orequipment,andavailablewhenneeded;)xUU ی` (#` (# Ќ  )     4 )V f  )0 `   completeallpreconstructionsurveyandengineeringpriortoissuingthe   contractoraNoticetoProceed;)VW ی!` (#` (# Ќ  )     4 );X g  )0 `   obtainthenecessaryapprovalsandagreementsfromallotherpublic  }#  authoritiesaffectedbytheprojectpriortocontractaward;);XnX یi$ ` (#` (# Ќ  )     4 )֩Y h  )0 `   assurethatalldesignandshopdrawingsarepromptlyapprovedandmade A&X" availabletothecontractorasneeded.)֩YY ی-'D #` (#` (# Ќ  =,X, X,X4` XnP=FreedomofInformationAct󀄀Granteesarecautionedthatthewrittenmaterialsfurnished )"% toFTAwithnotificationsofdisputedclaimsorrelatingtoproposedstatementsofclaims )#& anddisputes,aresubjecttoreleasetothepublicundertheFreedomofInformationAct *#' (FOIA).Therefore,whenthedisputeisstillintheevaluation/negotiationstage,anda +$( settlementhasnotyetbeenreached,aprudentapproachwouldbeforgranteestoinclude ,%) intheirquarterlywrittenreportstoFTAonlyinformationthat,ifreleased,wouldnot -&* prejudicethegranteesnegotiationorsettlementstrategy. .'+   y/(,  BestPractices   StepstobeTakenPriortoNegotiationsWhenaclaimand/orgrievanceisinitiatedbyoneof  theparties,thegranteeshouldtakethefollowingsteps:     )  0  0(#(#)L_ a  )04(#(#  Requestfromthecontractorawrittendetailedpositiononeachseparateclaimsetting   forththeamountandrationaleforthecontractorspositionsoneachitem.)L__ یq 4(#4(# Ќ  )  0  0(#(#)` b  )04(#(#  Listallthecounterclaimsbythegrantee,settingforththeamountandrationaleforthe I` granteespositiononeachitem.)`$a ی5L 4(#4(# Ќ  )  0  0(#(#)^b c  )04(#(#  Performaprice,cost,technicalandlegalanalysis,asrequired,foreachclaimand/or  $  grievancepresentedbytheparties.SeeBPPMSection5.2CostandPriceAnalysis.   Atechnicalanalysisistodeterminethevalidityoftheclaimsand/orgrievances,and   todeterminetherebuttalstothoseclaimsandgrievances.Thelegalanalysisisto   considerallthefactorsavailableaftertheprice,cost,andtechnicalreviewshavebeen   completedtodeterminethecontractors,thegranteesandtheGovernments(FTA)  legalposition.Eachreviewshouldbeperformedbythepersonsqualifiedtomakethe  particularreview/analysis.)^bb ی4(#4(# Ќ  0  0(#(# (#(# )  0  0(#(#)֔f d  )04(#(#  Thegranteeshouldthenestablishitsbestpositionassumingitprevailsonallofits Yp claimsandtheotherpartylosesallofitsclaimsbeforeacourtorarbitrationpanel. E\ Thisisconsideredthegrantees bestposition.)֔ff ی1H4(#4(# Ќ  )  0  0(#(#)֊h e  )04(#(#  Thegranteeshouldthendeterminethecontractorsbestposition,assumingthe    contractorprevailsonallitsclaimsbeforeacourtorarbitrationpanel.Thisisthe   grantees worstposition.)֊hh ی4(#4(# Ќ  )  0  0(#(#)dj f  )04(#(#  Thegranteeshouldthenestablisha realisticposition,basedonthegranteesbest   judgementastoeachiteminissue,byattemptingtoanticipatetheoutcomeofa ! determinationbyacourtorarbitrationpanel.The realisticpositionshouldresult " fromconsiderationofalltheargumentsandfactsgatheredthroughtheanalysisabove.)djj ی}#4(#4(# Ќ  )  0  0(#(#)l g  )04(#(#  Eachclaimorgrievanceitemshouldbeconsideredandhandledseparatelyinthe U%l! granteespreparationfornegotiationswiththecontractor.)l"m یA&X"4(#4(# Ќ  )  0  0(#(#)mn h  )04(#(#  Ifliquidateddamagesareinvolvedintheclaim/grievancesettlement,theGovernment (0!$ hasavestedinterestintheliquidateddamagesandwillneedacompleteanalysisof )"% howtheliquidateddamagesamountwasdetermined.Onceassessed,liquidated )#& damagesmaynotbewaivedbythegrantee,withoutpriorFTAconcurrence. *#' However,avalidsetoffagainstsomeothercontractclaimsorothertradeoffforother0@"rculara0@"(#(#0@"(#(# +$( contractualdeliverablesmaybeappropriatewithFTAapproval.Liquidateddamages ,%) areconsideredassessedwhenawrittennotificationissenttothecontractor.)mnn ی-&*4(#4(# Ќ    0  04(#(#tXIXXX-Sections9.2.3.5Delays,and9.2.3.6Acceleration,shouldbecarefullyreviewedfor .'+ guidancewhensettlingclaimsinvolvingdelays,orclaimswherethecontractor y/(, alleges constructiveaccelerationonthepartofthegrantee.Where,forexample,  thereareconcurrentdelays(thosecausedbybothparties),anditisimpossibleto  apportionorseparatethedelaysastohowmuchisduetotheactionsoftheseparate  parties,thenliquidateddamagescannotbeenforced.Ontheotherhand,ifthedelays   canbeapportionedastocontractorcaused,granteecaused,and excusableperthe   contractterms,thenthegranteecanenforceliquidateddamagestotheextentofthe   contractorcauseddelays(butnotforthegranteecauseddelaysorfor excusable q  delays).TheendproductofyournegotiationswiththeContractorontheissueof ] t delaysandliquidateddamageswouldbeacontractmodificationextendingthe I` deliverydatefor excusabledelaysasdefinedbythecontractterms,aswellasfor 5L  delaysforwhichthegranteeisresponsible(changes,constructivechanges,etc.).The !8  deliverydatewouldnotbeextendedfordelaysthatwerecausedbytheContractor.  $  Thenewlyestablisheddeliverydatewouldthenbecomethedateusedtoassess   liquidateddamages.#X-XXtXIjr#Ԁ 4(#4(# &5Z %XX-X-X %&5Z0  0(#(#)  ){y i  )04(#(#  Ifthereisanarbitrationclauseinthethirdpartycontract,FTAmustbenotifiedbefore   thematterissubmittedtoarbitration.FTAmustconcurinanyarbitrationaward  beforeitbecomesfinalandFederalFundsarereleased.){yy  ی4(#4(# Ќ  &5Z %XX-X-X %&5ZNegotiationsNegotiationsshouldbeonanitembyitembasiswithwrittenargumentsforeach E\ side.Thegranteeshouldaggressivelypursueallclaimsandcounterclaimsaswellasdefend 1H againstallclaimsandcounterclaimsofthecontractor.Thefinalpositionarrivedatthroughthe 4 negotiationsshouldbesetforthandjustifiedinwriting.    &5Z %XX-X-X %&5ZIfdiligenteffortstosettletheclaimsand/ordisputesonanitembyitembasishavefailedto  resolvealltheitems,thenadeterminationcanbemaderegardingthefeasibilityofatotalcostor  othertypesettlement.Ifthedeterminationismadebythepartiestogotoatotalcostorother  typesettlement,thegranteeshouldwriteadetailedexplanationofhowthepartiesarrivedatthe  conclusionthatthetotalcostortheothertypesettlementwasthebestwayyoproceed.In }  addition,thegranteeshouldprovideacompleteexplanationofhowthefinalsettlementfigure i! wasreached,andhoweachitemintheclaim/disputewasconsidered. U"l &5Z %XX-X-X %&5ZFinally,thegranteeshouldnotacceptacontractorsclaimforitscostwithouthavingconducted $0  anappropriatereview/analysis.Ifthegranteeisunabletoverifythecostpriortoacceptingit,the %! granteeshouldconditionallyacceptitsubjecttolaterauditverification. %" &5Z %XX-X-X %&5ZWhenFTAConcurrenceisRequiredShouldFTArequesttoreviewtheproposedsettlement ' $ beforeitisimplementedbetweenthegranteeanditscontractor,thegranteeshouldsendtothe (!% FTARegionalOfficeadetailedsummaryofthesettlement,andincludeasbackupthe )"& negotiationmemorandumandalltheprenegotiationanalyses,describedabove,thatledtothe y*#' negotiations.Inaddition,thegranteeshouldprovideawrittenopinionofcounselexplainingwhy e+|$( theproposedsettlementisfairandreasonable,consistentwithStatelaw,andinthebestinterests Q,h%) ofthegranteeandtheGovernment. =-T&* EngagingOutsideCounselIfitbecomesnecessaryforthegranteetoengageoutsidecounselto /,(, handlethesettlementnegotiationsor,ifnecessary,tolitigateorarbitratethecase,thegrantee  must,ifgrantfundsarerequestedtocoverthelegalcosts,obtainFTAsconcurrenceinadvance.  GranteesmustdemonstratetoFTAthattheirownlegalresourcesareinadequatetohandlethe  issuesathand,whetherbecauseofthenatureoftheclaim,thetrainingandexperienceofits   personnel,orthepotentialstrainonthegranteesstaffresources.Outsidecounselmustbe   selectedthroughacompetitiveprocessthatmayrangefrombeingveryinformaltoveryformal.   Notethataqualificationsbasedselectionprocedure,suchasispermittedforAEprocurements, q  isnotpermittedforlegalservices;cost/priceproposalsmustberequestedandevaluatedasapart ] t oftheselectionprocess.Thefeearrangementwithoutsidecounselcannotbebasedupona I` continencyorpercentageofrecoverymethodology. 5L  AvoidingDisputesThroughProperDocumentationDocumentationofsignificanteventsas  $  theyoccurintheformofcorrespondence,dailydiaryentries,inspectorsdailyreports,   photographs,memorandaoftelephoneconversationsandmeetings,etc.,createsaprojectrecord   thatisabsolutelyessentialinevaluatingclaimsreachinglitigation.Absoluteattentionto   documentationisvitalinbothdiscouragingsubmittalsofinvalidclaimsandproperlyanalyzing   anyclaimfiled.- $#  4        DailyLogsThedailyreports/logsofthegranteesinspectormaybethemostimportantsource  forclaimresearchanddefense.Inspectorsandfieldengineersmustbetrainedtospot m change/claimsituationsandtheymustbeinstructedonwhattoincludeintheirreports,bothona Yp routinebasisandwhentheysensearealorpotentialproblem.Thedailyreportsshouldtrackthe E\ constructionprogressagainsttheapprovedschedule(CPMSchedule).Thedailyreportsshould 1H alsotracktheequipmentonsiteaswellastheutilizationofequipment.Theseinspectorreports 4 mustbemonitoredcarefullybytheinspectorssupervisortomaintainhighquality.    DocumentationofmeetingsandtelephoneconversationsInordertoavoidmisunderstandings  regardingagreementsreachedduringmeetingsandtelephoneconversationswiththeContractor  and/orbetweengranteepersonnel,itiscriticaltoprepareminutesofthemeetingsanddistribute   themtoalloftheattendees.Allimportanttelephoneconversationsshouldrecordedona ! TelephoneCallRecord,notingthepertinentissuesdiscussed,howtheissueswereresolved,who " isresponsiblefortakingtherequiredaction,etc.Theotherpartytothecallshouldalwaysbe }# sentacopyofthecompletedTelephoneCallRecord. i$  Photographs󀄀Frequently,photographsareavaluableformofdocumentationinaclaimsituation. (0!$ Thegranteesresidentengineermustmakeanadequatephotographicrecordoftheprogressof )"% thecontract.Thephotographsmustbedated,properlyidentified,annotatedastowhotookthe )#& photographandtheweatherconditionsatthetime,andfiled.Photographsshouldcoverthe *#' followingitems: +$(  ,%) ޵XX- b  0     bp04(#(#  #X-X޵Q#Progressofthework bp݌4(#4(# Ќ  ޵XX- b  0     br04(#(#  #X-X޵S#Unusualconstructiontechniques br݌4(#4(# Ќ  ޵XX- b  0     b04(#(#  #X-X޵`#Accidentsordamages b݌4(#4(# Ќ  ޵XX- b  0     b04(#(#  #X-X޵b#Unsafeorhazardousworkingconditions b݌ 4(#4(# Ќ  ޵XX- b  0     b04(#(#  #X-X޵w#Reinforcingsteelpriortoconcreteplacement bə݌ 4(#4(# Ќ  ޵XX- b  0     b04(#(#  #X-X޵#Workcompletedpriortobeingcovered b݌ 4(#4(# Ќ  ޵XX- b  0     bś04(#(#  #X-X޵#Areasoractivitieswhereclaimsand/orchangesareanticipated. bś݌q 4(#4(# Ќ  Theconstructioncontractshoulditselfcontainprovisionsrequiringthecontractortoprovide I` monthlyprogressphotographs.Thegranteesresidentengineermustparticipateinthechoosing 5L  oflocations,angles,andsubjectsinordertomaximizetheusefulnessofthephotographsfor !8  progressrecords.  $  AlternativeDisputeResolutionTheFTAMasterAgreementMA(12),Section43e,encourages   granteestousealternativedisputeresolutionprocedures,asmaybeappropriate.Thealternatives   tolitigationthataremostcommonlyusedarearbitrationandmediation.Granteesareadvisedto   becautiousintheirdecisionstousearbitration.Incasesthatarecomplex,arbitrationmaynotbe  preferableoverlitigationbecausearbitratorsfrequentlyhavelimitationsontheamountoftime  theycandevotetoanyindividualcase.Asaresult,ifthecaseiscomplexandatimeconsuming,  itmaybenecessarytochangearbitratorsduringtheproceedings,andthismaybeverydisruptive m tothepartiesandtheircase.Arbitrationmaybemoreadvisablefordisputesthatarenotcomplex Yp anddonotinvolveagreatdealoffactsthatmustbedeterminedinordertosettletheclaim. E\ Granteesareadvisedtothinkthecasethroughcarefullybeforedecidingnottolitigate. 1H