SR 169

2026 Regular Session  ENROLLED
SENATE RESOLUTION NO. 169
BY SENATOR WHEAT
  A RESOLUTION
To direct the Department of Transportation and Development to establish and study a
        two-year pilot program for the use of dispute review boards on certain highway and
        transportation construction projects beginning in the state fiscal year commencing
        July 1, 2026, and to report to the Senate Committee on Transportation, Highways
        and Public Works concerning implementation and results of the pilot program.
        WHEREAS, disputes arising during highway and transportation construction projects
can delay work, increase costs, strain project relationships, and lead to claims or litigation
after project completion; and
        WHEREAS, resolving disputes while work is ongoing can preserve project
momentum, improve documentation, and allow disagreements to be addressed while the
relevant facts, records, personnel, and field conditions remain current; and
        WHEREAS, a dispute review board is an independent panel composed of at least
three members established at the beginning of a construction project to assist the owner and
contractor in avoiding disputes and resolving disputes early through informed, neutral,
project-specific recommendations; and
        WHEREAS, dispute review boards are particularly useful on large, complex, or
high-risk transportation projects involving disputes concerning contract interpretation, extra
work, differing site conditions, quantities, payment, delay, acceleration, disruption, and other
matters arising out of contract performance; and
        WHEREAS, a dispute review board process is advisory and nonbinding, preserves
the rights and defenses of the Department of Transportation and Development and its
contractors, and does not alter, amend, or expand the terms of the construction contract; and
        WHEREAS, the Department of Transportation and Development should evaluate
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SR NO. 169  ENROLLED
best practices used by other state transportation agencies and follow the example of fifteen
state departments of transportation around the country that have used dispute review board
processes or similar dispute avoidance and resolution procedures on transportation
construction projects; and
        WHEREAS, a two-year pilot program, commencing in the state fiscal year on July
1, 2026, allows the department to test dispute review board procedures, evaluate costs and
benefits, and collect meaningful data concerning dispute avoidance, claims reduction, project
delivery, and litigation prevention; and
        WHEREAS, the pilot program may include at least five projects per fiscal year to
ensure the department has sufficient experience and data to evaluate the process across
different project types, regions, contract values, and levels of complexity.
        THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana
does hereby direct the Department of Transportation and Development to study, establish
and implement a dispute review board pilot program for two years, for appropriate highway
and transportation construction projects, beginning during the state fiscal year commencing
July 1, 2026, continuing for not less than two fiscal years, with no less than five projects per
fiscal year.
        BE IT FURTHER RESOLVED that the department select pilot projects based on
criteria established by the department, including contract value, complexity, risk, project
duration, delivery method, or other factors relevant to the likelihood of construction disputes.
        BE IT FURTHER RESOLVED that the department include dispute review board
requirements in the advertisement, special provisions, proposal, or contract documents for
each selected pilot project, including a "pay item" or other contract mechanism identifying
when a dispute review board will be used.
        BE IT FURTHER RESOLVED that each dispute review board consist of members
selected from a roster of qualified and independent candidates maintained by the department
in consultation with representatives of the transportation construction industry and other
appropriate stakeholders including:
        (1) One member selected by the department.
        (2) One member selected by the contractor.
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SR NO. 169  ENROLLED
  (3) One member selected by the first two members who will serve as chairman.
  (4) Other members, if mutually agreed upon, may be added and removed as
necessary.
  BE IT FURTHER RESOLVED that dispute review board members shall have
relevant experience in heavy, highway, bridge, or transportation construction, construction
management, contract administration, claims analysis, engineering, scheduling, or dispute
resolution; be free from disqualifying conflicts of interest; and be bound by a standard
agreement governing ethics, duties, confidentiality, disclosure obligations, compensation,
and procedures.
  BE IT FURTHER RESOLVED that the dispute review board may review disputes
concerning contract interpretation, payment, extra work, differing site conditions, quantity
disputes, delays, acceleration, disruption, and other matters arising out of contract
performance, but should not have authority to change or amend a contract, decide tort or
third-party claims, determine matters beyond the legal authority of the department, or
determine the validity of statutes, regulations, or public policy.
  BE IT FURTHER RESOLVED that the department is directed to provide procedures
for early orientation meetings, regular project meetings or site visits, referral of unresolved
disputes, submission of position papers and supporting documents, informal hearings,
written recommendations, and written acceptance or rejection of recommendations by the
parties.
  BE IT FURTHER RESOLVED that the department is directed to consider whether
dispute review board review should be made a contractual condition precedent to formal
claims, arbitration, or litigation for disputes within the board's scope, unless waived in
writing by both the department and the contractor for a specific dispute.
  BE IT FURTHER RESOLVED that participation in a dispute review board process
will not automatically extend legal or contractual deadlines, waive claim preservation
requirements, or waive any rights or defenses unless expressly provided by contract or law.
  BE IT FURTHER RESOLVED that the department is directed to designate a dispute
review board program administrator to maintain the roster, standardize agreements and
procedures, coordinate training, collect data, and evaluate program performance.
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SR NO. 169  ENROLLED
       BE IT FURTHER RESOLVED that the department is directed to submit a written
interim report not later than March 1, 2027, concerning the department's progress, selected
pilot projects, project selection criteria, candidate qualification criteria, standard contract
provisions, anticipated costs, and implementation schedule and submit a final report not later
than June 30, 2028, concerning the results of the pilot program, including the number and
type of projects included, the number and type of disputes referred to dispute review boards,
program costs, timeliness of recommendations, acceptance or rejection of recommendations,
any observed reduction in claims or litigation, and the department's recommendation as to
whether the program should be continued, modified, expanded, or made permanent to the
president of the Senate, the Senate Committee on Transportation, Highways and Public
Works, and the David R. Poynter Legislative Research Library as required by R.S. 24:771
and 772.
       BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
secretary of the Department of Transportation and Development.
  PRESIDENT OF THE SENATE
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