§ 37-16-2 - Contract provision for arbitration.
SECTION 37-16-2
§ 37-16-2 Contract provision forarbitration. – (a) A provision in a written contract executed on or after January 1, 1962, forthe construction, alteration, repair, or painting of any public building,sewer, highway, bridge, water treatment or disposal projects one party to whichis the state, a city, a town, or an authority, a board, a public corporation,or any similar body created by statute or ordinance or any committee, agency,or subdivision of any of them, to settle by arbitration any dispute or claimarising out of or concerning the performance or interpretation of the contractshall be valid, irrevocable, and enforceable, save upon grounds existing in lawor equity for the revocation of the contract.
(b) Every contract for the construction, alteration, repair,painting, or demolition of any public building, sewer, water treatment ordisposal project, highway, or bridge one party to which is the state, a city, atown, or an authority, a board, a public corporation, or any similar bodycreated by statute or ordinance or any committee, agency, or subdivision of anyof them which has a contract price of ten thousand dollars ($10,000) or moreand which is executed on or after July 1, 1967, shall contain a provision forarbitration of disputes and claims arising out of or concerning the performanceor interpretation of the contract as follows:
(2) "All claims, disputes, and other matters in questionarising out of or relating to this contract or the performance orinterpretation thereof shall be submitted to arbitration. Arbitration shall becommenced by a demand in writing made by one party to the contract upon theother within a reasonable time after the dispute, claim, or other matter inquestion arose but in no event after payment in full of the contract price hasbeen made and accepted. The written demand shall contain a statement of thequestion to be arbitrated and a detailed statement of each item or matter indispute and the name of the arbitrator appointed by that party. The other partyto the contract within ten (10) days of the receipt of the written demand shallappoint an arbitrator and give notice in writing thereof to the party whocommenced arbitration. The two (2) arbitrators appointed by the parties shallwithin ten (10) days of the date of the appointment of the second arbitratorselect a third arbitrator who shall be designated as chairperson and whoimmediately shall give written notice to the parties of his or her appointment.The third arbitrator shall select a time, date, and place for hearing and giveeach party five (5) days notice in writing thereof. The date for hearing shallnot be more than fifteen (15) days after the date of appointment of the thirdarbitrator. The award shall be made promptly by the arbitrators and, unlessotherwise agreed by the parties or specified by law, no later than thirty (30)days from the date of closing the hearing, or, if oral hearings have beenwaived, from the date of the transmittal of the final statements and proofs tothe arbitrators. The award shall be in writing and shall be signed by amajority of the arbitrators. It shall be executed in the manner required bylaw. The arbitrator shall provide a written explanation of the reasoning forthe award. In the event the party of whom arbitration is demanded shall fail toappoint his or her arbitrator within the time specified or the two (2)arbitrators appointed by the parties are unable to agree on an appointment ofthe third arbitrator within the time specified, either party may petition thepresiding justice of the superior court to appoint a single arbitrator whoshall hear the parties and make an award as provided herein. The petitionershall give five (5) days notice in writing to the other party before filing hisor her petition."
(c) Any dispute involving claims less than one hundredthousand dollars ($100,000) and associated with construction of a highway orbridge as referred to in subsection (b) shall be submitted to arbitration. Anydispute involving claims of one hundred thousand dollars ($100,000) or more andassociated with construction of a highway or bridge as referred to insubsection (b) shall only be arbitrated with the consent of the parties. If theparties fail to consent to arbitration and the state of Rhode Island is a partyto the dispute, then the claim will proceed in accordance with § 37-13.1-1.
(d) For the purposes of this section, the term "claims" shallnot mean the aggregate amount sought under the contract or in the arbitration,but shall refer specifically to each item or matter in dispute for whichadditional compensation is sought or for each item for which a credit is sought.
(e) Notwithstanding subsection (a) or (b) of this section, ifany contract except for highway and bridge contracts provides for anarbitration procedure, and a method of appointment of an arbitrator orarbitrators, that method shall be followed instead of the method provided insubsection (b) of this section.
(f) This section shall apply to all written contractsexecuted on or after January 1, 1986.