Council amends Siemens dispute‑resolution clause for Green Line Extension contract
Get AI-powered insights, summaries, and transcripts
Sign Up Free
Summary
The council authorized an amendment to contract 15P148 with Siemens Mobility Inc. to add a three‑step dispute‑resolution process (expert negotiations, evaluative mediation, then binding arbitration) for the Green Line Extension light rail vehicle contract; staff said a separate $3 million claim fund is under other authority and not part of this item.
The Metropolitan Council on March 25 authorized an amendment to the dispute‑resolution provisions of the Siemens Mobility Inc. light rail vehicle contract (contract 15P148) for the Green Line Extension project.
Project director Jim Alexander introduced the item, describing the contract background and vehicle type; Patrick Lee O’Halloran, associate general counsel, explained that earlier project delays (including COVID‑related ripple effects and a rebaseline schedule) prompted the council to adopt alternative dispute‑resolution procedures for the project’s civil and systems contracts and to seek the same approach for the Siemens vehicle contract.
O’Halloran described a three‑step process: step one is negotiated discussions with opportunities to vet claims using national experts; step two is evaluative mediation with a mediator who helps test costs and reach agreement; and step three, if prior steps fail, is binding arbitration. He said the process is intended to resolve disputes quickly while allowing thorough cost vetting and to keep commissioning on track.
O’Halloran also said the amendment would add $3 million to address contractor claims of delay but clarified that the council was not being asked to authorize those funds in this item because separate authority already exists for them.
Council members asked whether Siemens agreed to the change; the project team said they had ongoing discussions and Siemens indicated it was on board with the proposed process. After a motion from committee, councilors approved the amendment.
The council’s action was procedural—authorizing the regional administrator to negotiate and execute the amendment—so staff will return to procurement and contract records with the executed amendment and any required reporting.