Bulletin 101-74: Consultant Contract Template - ACTION REQUIRED

Oregon Department of Transportation sent this bulletin at 12/31/2024 09:15 AM PST

Statewide Programs Unit

Certification Program Office (CPO)

Policy Number: 101-74

Supersedes:

N/A

Effective Date: 12/31/2024

Reference: ODOT Certification Program

Target Audience: Certified Local Public Agencies, Region Managers, Area Managers, Local Agency Liaisons/Transportation Project Managers

Subject: Consultant Contract Template: Indemnification Update – ACTION REQUIRED

CC: ODOT Statewide Investments Manager, Statewide Programs Unit, Subject Matter Resources (ODOT Procurement Office), FHWA

PURPOSE:

To notify Certified Local Public Agencies (LPAs) about an updated consultant contract indemnification provision for use with ODOT’s LPA Template for FHWA-Funded Contracts to implement Senate Bill 1575 (2024) requirements, effective January 1, 2025.

BULLETIN INFORMATION:

Background: Senate Bill 1575 amends ORS 30.140 and makes unenforceable any contractual provision that requires a consultant to defend a public body against claims for professional negligence relating to the consultant’s professional services (“architectural, engineering, photogrammetric mapping, transportation planning or land surveying services” (A&E Services) or “Related services,” (Related Services) as those terms are defined in ORS 279C.100) – unless the provision is limited “to the extent prohibited” by the requirements of Senate Bill 1575.

ODOT is in the process of updating the LPA A&E Contract and Request for Proposal templates for use by Certified LPAs, which will include an updated professional liability provision that complies with Senate Bill 1575. However, the overall template updates are not anticipated to be ready for use until around June 2025. In the meantime, this bulletin provides Certified LPAs with the updated professional liability provision.

Contract Provision to Update: In the Terms and Conditions section of the LPA A&E Contract template (Form C017-B070620-Rev3 or earlier, dated 5/3/22 in the Revision History or earlier), revise 13.b Claims for Professional Liability as follows:

Claims for Professional Liability language

Applicability: The requirements of Senate Bill 1575 apply to contracts that include A&E Services and Related Services (except for Design Build) and that are entered into or renewed (i.e. amended for extension of time or reinstatement) on or after January 1, 2025, and on or before December 31, 2034. Note, these requirements do apply to A&E Services and Related Services provided under Construction Manager/General Contractor contracts.

ACTION REQUIRED: By January 15, 2025, the program liaison or coordinator for each Certified LPA should complete the CPO Bulletin 101-74 Acknowledgement Survey By CLPA to confirm this bulletin has been reviewed and shared with applicable agency staff.

Technical Assistance: For technical assistance with the RFP and contract templates for use by Certified LPAs, please email Joel Sire, Procurement and Contract Specialist in the ODOT Procurement Office and copy ODOTCertification@odot.oregon.gov.

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