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Bill > HB847


VA HB847

VA HB847
Virginia Public Procurement Act; statute of limitations on actions on construction contracts.


summary

Introduced
01/07/2020
In Committee
01/21/2020
Crossed Over
Passed
Dead
03/12/2020

Introduced Session

2020 Regular Session

Bill Summary

Virginia Public Procurement Act; statute of limitations on actions on construction contracts; statute of limitations on actions on performance bonds. Provides that no action may be brought by a public body on any construction contract, including construction management and design-build contracts, unless such action is brought within five years after completion of the work on the project, and provides that no action may be brought by a public body on a warranty or guaranty in such construction contract more than one year from the breach of that warranty, but in no event more than one year after the expiration of such warranty or guaranty. The bill also limits the time frame during which a public body, other than the Department of Transportation, may bring an action against a surety on a performance bond to within one year after completion of the work on the project. Current law allows a public body, other than the Department of Transportation, to bring such an action within one year after (i) completion of the contract, including the expiration of all warranties and guaranties, or (ii) discovery of the defect or breach of warranty that gave rise to the action. The bill contains technical amendments.

AI Summary

This bill amends the Virginia Public Procurement Act to establish a statute of limitations for actions on construction contracts and performance bonds. Specifically, it provides that: 1. No action may be brought by a public body on any construction contract, including construction management and design-build contracts, unless the action is brought within five years after completion of the work on the project, or within one year after the expiration of a warranty or guaranty in the contract. 2. No action may be brought by a public body against a surety on a performance bond, except for the Department of Transportation, unless the action is brought within one year after completion of the work on the project. The bill also makes technical amendments and clarifies the exemptions from the Virginia Public Procurement Act for certain entities, such as public institutions of higher education and school boards that use public school foundations or educational technology foundations.

Committee Categories

Justice

Sponsors (2)

Last Action

Incorporated by Courts of Justice (on 02/05/2020)

bill text


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