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2001 SESSION
016993988Be it enacted by the General Assembly of Virginia:
1. That § 33.1-386 of the Code of Virginia is amended and reenacted as follows:
§ 33.1-386. Submission of claims; initial investigation and notice of decision; appearance before Commissioner; further investigation and notice of decision; settlement.
A. Upon the completion of any contract entered into on or after July 1, 1976,
for the construction of any state highway project awarded by the Commonwealth
Transportation Board to any contractor, if the contractor fails to receive such settlement
as he claims to be entitled to under the contract for himself or for his
subcontractors or for persons furnishing materials for the contract for costs
and expenses caused by the acts or omissions of the Department of
Transportation, he may, within sixty days from the time of notification of the
Department's final estimate, submit to the Department of Transportation,
through proper administrative channels as determined by the Department, a
written claim for such amount to which he deems himself, his subcontractors, or
his material persons entitled under the contract. The claim shall set forth the
facts upon which the claim is based, provided that written notice of the
contractor's intention to file such claim shall have been given to the
Department at the time of the occurrence or beginning of the work upon which
the claim and subsequent action is based. Within ninety days from receipt of
such claim, the Department shall make an investigation and notify the claimant
in writing by registered mail of its decision. The claimant and the Department
may, however, mutually extend such ninety-day period for another thirty days.
B. If dissatisfied with the decision, the claimant shall, within thirty days from receipt of the Department's decision, notify the Commonwealth Transportation Commissioner, in writing, that he desires to appear before him, either in person or through counsel, and present any additional facts and arguments in support of his claim as previously filed.
C. The Commissioner shall schedule such appearance to be held within thirty days of receiving the claimant's written request. The claimant and the Commissioner may, however, mutually agree to schedule such appearance to be held after thirty days but before sixty days from the receipt of the claimant's written request.
D. Within forty-five days from the date of the appearance before him, the Commissioner shall make an investigation of the claim and notify the contractor in writing of his decision. The claimant and the Commissioner may, however, mutually agree to extend such forty-five-day period for another thirty days. If the Commissioner deems that all or any portion of a claim is valid, he shall have the authority to negotiate a settlement with the contractor, but any such settlement shall be subject to the provisions of § 2.1-127.
E. Failure ofIf the Department or the Commissioner fails to render a decision
within the time period specified in subsections A and D of this section, or
within such other period as has been mutually agreed upon as provided in this
section, shall be deemed a denial of the claim the claimant may provide
written notice to the Department or Commissioner that a decision is due. If no
decision is made within thirty days from the Department's or Commissioner's
receipt of the notice, then the decision is deemed to be in favor of the
claimant. Any mutual agreements for time extension permitted herein shall
in no way extend the limitations set out in § 33.1-192.1.
F. This section shall apply to all construction contracts that are entered into
subsequent to June 30, 1976. Section 33.1-382 shall continue in force as to
contracts entered into prior to July 1, 1976.