                                 CODE OF VIRGINIA

CONTRACTUAL DISPUTES (§ 2.2-4363)

A. Contractual claims, whether for money or other relief, shall be submitted in
writing no later than 60 days after final payment. However, written notice of
the contractor&#8217;s intention to file a claim shall be given at the time of
the occurrence or beginning of the work upon which the claim is based. Nothing
herein shall preclude a contract from requiring submission of an invoice for
final payment within a certain time after completion and acceptance of the work
or acceptance of the goods. Pendency of claims shall not delay payment of
amounts agreed due in the final payment.

B. Each public body shall include in its contracts a procedure for consideration
of contractual claims. Such procedure, which may be contained in the contract or
may be specifically incorporated into the contract by reference and made
available to the contractor, shall establish a time limit for a final decision
in writing by the public body. If the public body has established administrative
procedures meeting the standards of &#xA7; 2.2-4365, such procedures shall be
contained in the contract or specifically incorporated in the contract by
reference and made available to the contractor.

C. If, however, the public body fails to include in its contracts a procedure
for consideration of contractual claims, the following procedure shall apply:

   1. Contractual claims, whether for money or other relief, shall be submitted
   in writing no later than 60 days after receipt of final payment; however,
   written notice of the contractor&#8217;s intention to file a claim shall be
   given at the time of the occurrence or at the beginning of the work upon which
   the claim is based.

   2. No written decision denying a claim or addressing issues related to the
   claim shall be considered a denial of the claim unless the written decision is
   signed by the public body&#8217;s chief administrative officer or his
   designee. The contractor may not institute legal action prior to receipt of
   the final written decision on the claim unless the public body fails to render
   a decision within 90 days of submission of the claim. Failure of the public
   body to render a decision within 90 days shall not result in the contractor
   being awarded the relief claimed or in any other relief or penalty. The sole
   remedy for the public body&#8217;s failure to render a decision within 90 days
   shall be the contractor&#8217;s right to institute immediate legal action.

D. A contractor may not invoke administrative procedures meeting the standards
of &#xA7; 2.2-4365, if available, or institute legal action as provided in
&#xA7; 2.2-4364, prior to receipt of the public body&#8217;s decision on the
claim, unless the public body fails to render such decision within the time
specified in the contract or, if no time is specified, then within the time
provided by subsection C. A failure of the public body to render a final
decision within the time provided in subsection C shall be deemed a final
decision denying the claim by the public body.

E. The decision of the public body shall be final and conclusive unless the
contractor appeals within six months of the date of the final decision on the
claim by the public body by invoking administrative procedures meeting the
standards of &#xA7; 2.2-4365, if available, or in the alternative by instituting
legal action as provided in &#xA7; 2.2-4364.

HISTORY: 1982, c. 647, § 11-69; 2001, cc. 106, 844; 2005, c. 815.