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2001 SESSION
019181916Be 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 of the Department or the Commissioner to render a decision within the time period specified in subsections A and D, or within such other period as has been mutually agreed upon as provided in this section, shall be deemed a denial of the claim. 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. If the Commissioner determines
that a claim has been denied as the result of an administrative oversight, then the
Department reserves the right to reconsider the claim.