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SR 169

TRANSPORTATION/DEV DEPT: Directs the Department of Transportation and Development to establish a two-year minimum pilot program for the use of dispute review boards on certain highway and transportation construction projects.

2026 Regular Session Introduced by Bill Wheat

Louisiana will test a two-year pilot using dispute review boards on highway projects to reduce disputes and improve project delivery.

Enrolled. Signed by the President of the Senate and sent to the Secretary of State by the Secretary of the Senate on 6/2/2026.
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Bill Summary · SR 169

Summary of SR 169 (Louisiana, 2026)

Purpose and intent

  • Directs the Louisiana Department of Transportation and Development (DOTD) to establish and study a two-year pilot program using dispute review boards (DRBs) on certain highway and transportation construction projects.
  • The pilot begins in the state fiscal year starting July 1, 2026, and aims to evaluate whether DRBs can improve project delivery, reduce disputes, and limit claims or litigation.

Key provisions and changes proposed

  • Pilot scope and duration
    • Two-year pilot program, beginning July 1, 2026, with a minimum duration of two fiscal years.
    • At least five projects per fiscal year (minimum five projects per year) to ensure variety across project types, regions, contract values, and complexity.
  • Project selection and governance
    • DOTD will select pilot projects based on criteria such as contract value, complexity, risk, project duration, delivery method, and other dispute-prone factors.
    • Each selected project must include DRB requirements in advertisements, special provisions, proposals, or contract documents, including a pay item or contract mechanism identifying when a DRB will be used.
  • DRB composition and qualifications
    • DRBs must consist of at least three members drawn from a roster maintained by DOTD in consultation with industry representatives and other stakeholders.
    • Members include: one selected by DOTD, one by the contractor, and one by the initial two members who will serve as chair; additional members may be added or removed by mutual agreement.
    • Members must have relevant experience (heavy/highway/bridge/transportation construction, construction management, claims analysis, engineering, scheduling, dispute resolution), be free of disqualifying conflicts, and follow a standard ethics, confidentiality, disclosure, compensation, and procedures agreement.
  • DRB authority and process
    • DRBs are advisory and nonbinding; they help with contract interpretation, extra work, differing site conditions, quantities, payment, delays, disruption, and other contract-performance issues.
    • DRBs cannot change or amend the contract, decide tort or third-party claims, or decide matters beyond the department’s legal authority or the validity of statutes/regulations/public policy.
    • Requires procedures for early orientation meetings, ongoing project meetings or site visits, referral of unresolved disputes, submission of position papers, informal hearings, written recommendations, and formal acceptance or rejection of recommendations.
    • Consideration of making DRB review a contractual condition precedent to formal claims, arbitration, or litigation for disputes within the DRB’s scope, unless waived in writing by both parties for a specific dispute.
    • Participation in DRB processes does not automatically extend deadlines or waive claim preservation rights unless expressly provided by contract or law.
  • Program administration and reporting
    • DOTD will designate a DRB program administrator to maintain the roster, standardize agreements and procedures, coordinate training, collect data, and evaluate performance.
    • Interim report due by March 1, 2027, detailing progress, selected projects, criteria, standard provisions, anticipated costs, and implementation schedule.
    • Final report due by June 30, 2028, covering the number and types of projects, disputes referred to DRBs, program costs, timeliness of recommendations, acceptance/rejection of recommendations, observed reductions in claims or litigation, and a recommendation on continuing, modifying, expanding, or making the program permanent.
  • Compliance and transparency
    • The final and interim reports are to be submitted to the Senate President, the Senate Committee on Transportation, Highways and Public Works, and the David R. Poynter Legislative Research Library as required by law.

Who/what would be affected

  • State agencies and projects: DOTD would implement and operate the DRB pilot on selected highway and transportation construction projects.
  • Contractors and project owners: Contractors and DOTD would participate in DRB processes, affecting dispute resolution dynamics, potential time savings, and documentation practices.
  • DRB professionals: A roster of qualified DRB members would be maintained; contractors and DOTD would select DRB members for each project.

Procedural and timeline aspects

  • Authorization and start: Pilot begins in the 2026 fiscal year (July 1, 2026).
  • Duration: Minimum of two fiscal years, with at least five projects per year.
  • Reporting: Interim report due March 1, 2027; final report due June 30, 2028.
  • Implementation steps: DOTD to incorporate DRB requirements into project documents and establish the DRB program administrator and roster.

Potential impact (informational)

  • Potential reduction in disputes and litigation by resolving issues during project execution.
  • Possible improvements in project momentum, documentation quality, and stakeholder relationships.
  • Data collection to inform future policy on whether DRBs should be expanded or made permanent.

Compiled from official sources — confirm details with the bill’s official record.

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