§ (4A). Contract disputes.

(a) Sovereign immunity.

Unless otherwise specifically provided by the laws of Maryland, Baltimore City, its officers, departments, agencies, boards, commissions, or other units of government may not raise the defense of sovereign immunity in the courts of this State in an action in contract based on a written contract executed on behalf of the City, department, agency, board, commission, or unit by an official or employee acting within the scope of authority.

(b) Statutory immunity.

In any action in contract described in subsection (a) of this section, Baltimore City, its officers, departments, agencies, boards, commissions, and other units of government have the immunity from liability described in § 5-509 of the Courts and Judicial Proceedings Article.

A claim is barred unless the claimant files suit within 1 year from the date on which the claim arose or within 1 year after completion of the contract giving rise to the claim, whichever is later.

(d) Funds to satisfy final judgment.

The Mayor and City Council of Baltimore shall make available adequate funds for the satisfaction, after the exhaustion of any right of appeal, of a final judgment that has been rendered against the City or any officer, department, agency, board, commission, or other unit of government in an action in contract as provided in this section.

(e) Construction contracts – In general.

Except as provided in subsections (f) and (g) of this section, Baltimore City may not require in a construction contract, or otherwise provide with regard to a construction contract, to which it is a party, that a dispute between the parties involving $10,000 or more over the terms of the contract or performance under the contract be subject to final binding or conclusive determination by an officer or official body of Baltimore City.

(f) Construction contracts – Decision by neutral party or arbitration panel.

With regard to a construction contract to which it is a party, Baltimore City may provide or require that if there is a dispute over the terms of the contract or performance under the contract, the questions involved in the dispute shall be subject to a determination that is final and conclusive on all parties, made either by:

(1) a neutral person or entity selected by or in accordance with a procedure established by the Mayor of Baltimore City; or

(2) if the other party does not accept as neutral a person or entity selected under paragraph (1) of this subsection, by an arbitration panel composed of the following:

(i) one member designated by the Mayor of Baltimore City;

(ii) one member designated by the other party to the dispute; and

(iii) one member selected by mutual agreement of the 2 designated members from lists to be submitted by the parties to the dispute.

(g) Construction contracts – Decision by City officer subject to judicial review.

Notwithstanding the provisions of subsections (e) and (f) of this section, with regard to a construction contract to which it is a party, Baltimore City may provide or require that if there is a dispute between the parties involving $10,000 or more over the terms of the contract or performance under the contract, the dispute is subject to a determination of questions of fact by an officer or official body of Baltimore City, subject to review on the record by a court of competent jurisdiction.