Builders and Contractors Exchange
Weekly Bulletin: 02 Mar 2006
Underground Utility Damage Claims
By: John Lockard
Most contractors who perform site excavation and other site development work are familiar with the requirements of the Virginia Underground Utility Damage Prevention Act. If they are not familiar with the Act, they will soon become familiar if Dominion Power files a claim under the terms of the Act for the cost to repair damage to underground utilities allegedly caused by the contractor. The purpose of this article is to discuss such claims and to provide recommendations for how contractors should respond.
Most importantly, contractors must follow the detailed notice and excavation requirements required by the Act. These requirements include notifying Miss Utility of upcoming excavations and following the requirements after the utilities have been identified by the contract locator. The details of these requirements are too long to set forth in this article, but can be found at the Miss Utility website, www.missutilityofvirginia.com
It is also important to document the contractor’s compliance with the requirements of the Act and any damage to a utility line. A utility company has the right to seek damages from a contractor under the Act. It may be less known, however, that a contractor may have a claim against the provider if the provider, or its contract locator, fails to properly identify the location of the utility lines and thereby causes damages to the contractor. The Act specifically provides that a contractor can recover the cost to repair any damage to its equipment caused by the utility company's failure to comply with any of the provisions of the Act, including requirements to properly mark the location of the utility lines. The Act further provides that a contractor can pursue all other remedies under the law that may be available. For example, one Circuit Court awarded damages to a contractor for its costs for idle equipment and manpower caused by a delay in construction when a utility line was damaged after being incorrectly marked by a contract locator.
Contractors must be careful to follow the detailed requirements of the Act. Contractors should also carefully document any damage caused to a utility line and damage to their own equipment or other costs caused by such damage. Digital cameras are a valuable tool in documenting such incidents.
Questions?
If you have any questions about this article or any other related matters, please contact:
This article is meant to bring awareness to this topic and is not intended to be used as legal advice.