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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>61099</law_id><section_number>2.2-1519</section_number><catch_line>Implementation of certain capital outlay projects</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="2.2">Administration of Government</unit><unit label="subtitle" level="2" order_by="1" identifier="I">Organization of State Government</unit><unit label="part" level="3" order_by="1" identifier="C">State Agencies Related to the General Operation of Government</unit><unit label="chapter" level="4" order_by="1" identifier="15.1">Six-Year Capital Outlay Plan</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> 1. The Central Capital Planning Fund, the <span class="dictionary">State Agency</span> Capital Account, and the Public Educational Institution Capital Account established pursuant to &#xA7;&#xA0;<a class="law" title="Certain funds established" href="/2.2-1520/">2.2-1520</a> shall be used to fund <span class="dictionary">capital outlay projects</span> included in the six-year capital outlay plan enacted into <span class="dictionary">law</span>. <a id="paragraph-223359" class="section-permalink" href="https://vacode.org/2.2-1519/#A"><i class="fa fa-link"/></a></p></section>
						<section id="A2" class="indent-1"><p><span class="prefix-number">2.</span> In addition, public educational institutions and state agencies may request authority and appropriation to conduct <span class="dictionary">pre-planning</span> for any such <span class="dictionary">project</span> using nongeneral fund sources. Such costs may be reimbursed up to the lesser of $250,000 or one percent of the <span class="dictionary">project</span> construction costs. <a id="paragraph-223360" class="section-permalink" href="https://vacode.org/2.2-1519/#A2"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> A Virginia-based contractor who does not have the same number of years of comparable experience under construction management or design-build shall not be penalized for having less comparable experience in construction management or design-build projects, provided such contractor does have significant experience in constructing comparable projects under design-bid-build. The procuring entity shall consider the experience and quality of work that a contractor has done on projects comparable to the <span class="dictionary">project</span> being procured, whether under construction management, design-build, or design-bid-build. These factors shall be considered by the procuring entity in making its decisions in a pre-qualification or a contractor selection process. <a id="paragraph-223361" class="section-permalink" href="https://vacode.org/2.2-1519/#B"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> If at any time during the <span class="dictionary">detailed planning</span> phase the total cost of a <span class="dictionary">capital outlay project</span> is estimated to exceed a threshold amount set forth in the general appropriation act for the required use of <span class="dictionary">value engineering</span>, then <span class="dictionary">value engineering</span> shall be utilized for such project. Each agency and public educational institution shall retain documentation of the <span class="dictionary">value engineering</span> process conducted for any project, including documentation relating to (i) recommendations offered to the agency or institution, (ii) recommendations accepted and rejected by the agency or institution, and (iii) any savings to the agency or institution resulting from the adoption of each recommendation. <a id="paragraph-223362" class="section-permalink" href="https://vacode.org/2.2-1519/#C"><i class="fa fa-link"/></a></p></section>
						<section id="D"><p><span class="prefix-number">D.</span> For <span class="dictionary">capital outlay projects</span> for which an appropriation is made to the <span class="dictionary">State Agency</span> Capital Account or the Public Educational Institution Capital Account, after an agency or public educational institution has received authorization to move to the <span class="dictionary">construction phase</span> of a project, the Director of the Department of Planning and Budget shall transfer sufficient appropriation from the <span class="dictionary">State Agency</span> Capital Account or the Public Educational Institution Capital Account, as appropriate. <a id="paragraph-223363" class="section-permalink" href="https://vacode.org/2.2-1519/#D"><i class="fa fa-link"/></a></p></section>
						<section id="E"><p><span class="prefix-number">E.</span> 1. Prior to an agency or public educational institution awarding a construction <span class="dictionary">contract</span> for a project, the Director of the Department of General Services shall review the lowest bid or best proposal for the project. If the total amount of such bid or proposal, plus previously expended funds and a reasonable allowance for contingencies, does not exceed 105 percent of the general fund-supported resources for the project as determined during the <span class="dictionary">detailed planning</span> phase, the Director of the Department of General Services and the Director of the Department of Planning and Budget may approve the <span class="dictionary">contract</span>. If the total amount of such bid or proposal, plus previously expended funds and a reasonable allowance for contingencies, exceeds 105 percent of the general fund-supported resources for the project, the Directors shall not approve the <span class="dictionary">contract</span> unless funding of that portion of such total project cost in excess of 105 percent of the general fund-supported resources allocated to the project is from nongeneral fund sources such as private funds, gifts, grants, auxiliary funds, or federal funds as appropriate. <a id="paragraph-223364" class="section-permalink" href="https://vacode.org/2.2-1519/#E"><i class="fa fa-link"/></a></p></section>
						<section id="E2" class="indent-1"><p><span class="prefix-number">2.</span> If an agency or public educational institution is unable to procure funding from nongeneral fund sources for that portion of such total project cost in excess of 105 percent of the general fund-supported resources allocated to the project, then the agency or institution may reduce the size or scope of the project as necessary to remain within 105 percent of the general fund-supported resources allocated to the project, provided that (i) it has completed a <span class="dictionary">value engineering</span> review by or in collaboration with the Department of General Services, (ii) it has provided a written, detailed analysis of the proposed reduction to the Governor and to the Chairmen of the House Appropriations and Senate Finance Committees, and (iii) the project after such reduction in size or scope is substantially similar in quality and functionality to the original project. <a id="paragraph-223365" class="section-permalink" href="https://vacode.org/2.2-1519/#E2"><i class="fa fa-link"/></a></p></section>
						<section id="E3" class="indent-1"><p><span class="prefix-number">3.</span> An agency or public educational institution may request a supplemental allocation of general fund-supported resources through the budget process only if it submits a written certification to the Chairmen of the House Appropriations and Senate Finance Committees, the Director of the Department of General Services, the Director of the Department of Planning and Budget, and, for public institutions of higher education only, the Executive Director of the State Council of Higher Education, which certification (i) states that additional funding from nongeneral fund sources as described in subdivision 1 will be insufficient to pay for the full amount of the project cost that is in excess of 105 percent of the general fund-supported resources allocated to the project and (ii) provides a detailed analysis and description of the project as modified for a reduction in size or scope as described in subdivision 2 as well as a justification for why such modifications in size or scope cannot be achieved. <a id="paragraph-223366" class="section-permalink" href="https://vacode.org/2.2-1519/#E3"><i class="fa fa-link"/></a></p></section>
						<section id="E4" class="indent-1"><p><span class="prefix-number">4.</span> Nothing in this section shall preclude an agency or public educational institution from providing for re-design or additional <span class="dictionary">value engineering</span> of projects or re-bidding or re-submitting of proposals. <a id="paragraph-223367" class="section-permalink" href="https://vacode.org/2.2-1519/#E4"><i class="fa fa-link"/></a></p></section>
						<section id="E5" class="indent-1"><p><span class="prefix-number">5.</span> No construction <span class="dictionary">contract</span> for a <span class="dictionary">capital outlay project</span> included in the six-year capital outlay plan enacted into <span class="dictionary">law</span> shall be awarded unless first approved by the Director of the Department of General Services and the Director of the Department of Planning and Budget. <a id="paragraph-223368" class="section-permalink" href="https://vacode.org/2.2-1519/#E5"><i class="fa fa-link"/></a></p></section>
						<section id="F"><p><span class="prefix-number">F.</span> After a project has been approved by the Director of the Department of General Services and the Director of the Department of Planning and Budget, the Director of the Department of Planning and Budget shall transfer to the project the remaining funds needed for construction from the <span class="dictionary">State Agency</span> Capital Account or the Public Educational Institution Capital Account, as appropriate. <a id="paragraph-223369" class="section-permalink" href="https://vacode.org/2.2-1519/#F"><i class="fa fa-link"/></a></p></section></text><history>2008, Sp. Sess. I, cc. 1, 2.</history><metadata></metadata></law>
