SB 607

Abstract

Virginia Public Procurement Act; statute of limitations on performance bonds; statute of limitations on construction contracts and architectural and engineering contracts. Provides that an action against the surety on a performance bond shall be brought within five years after the completion of the contract. The bill further provides that the statute of limitations on construction contracts and architectural and engineering contracts is 15 years after completion of the contract. The bill specifies that completion of the contract is the final payment to the contractor pursuant to the terms of the contract, but that if a final certificate of occupancy or written final acceptance of the project is issued prior to final payment, the period to bring an action shall commence no later than 12 months from the date of the certificate of occupancy or written final acceptance of the project. This bill incorporates SB 195 and is identical to HB 1300.

Virginia Public Procurement Act; statute oflimitations on actions on construction contracts; statute of limitationson actions on performance bonds. Provides that no action maybe brought by a public body on any construction contract, includingconstruction management and design-build contracts, unless such actionis brought within five years after completion of the work on theproject, and provides that no action may be brought by a public body on a warranty or guaranty in such construction contract more thanone year from the breach of that warranty, but in no event more thanone year after the expiration of such warranty or guaranty. The billalso limits the time frame during which a public body, other thanthe Department of Transportation, may bring an action against a suretyon a performance bond to within one year after completion of thework on the project. Current law allows a public body, other thanthe Department of Transportation, to bring such an action withinone year after (i) completion of the contract, including the expirationof all warranties and guaranties, or (ii) discovery of the defector breach of warranty that gave rise to the action. The bill containstechnical amendments.