Contractors Need to Flag Unanticipated Costs As Soon As Project Delayed


In Commonwealth v. AMEC Civil, LLC[1], the Virginia Court of Appeals applied a strict interpretation to the statutory notice requirements for claims arising during the construction of state highways. The effect is to narrow the ability of plaintiffs to recoup unanticipated costs when the nature of the work changes, even unavoidably, and the claim for additional payments is not properly noticed at the time of delay. As a result, the Court set aside most of the $21.2 million judgment previously awarded to AMEC for cost overruns during construction of the Route 58 Clarksville Bypass in Mecklenburg, Virginia.

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