§ 143-135.3. Adjustment and resolution of State board construction contract claim. - North Carolina Statutes

§ 143‑135.3.  Adjustment and resolution of Stateboard construction contract claim.

(a)        The word "board" as used in this section shallmean the State of North Carolina or any board, bureau, commission, institution,or other agency of the State, as distinguished from a board or governing bodyof a subdivision of the State. "A contract for construction or repairwork," as used in this section, is defined as any contract for theconstruction of buildings and appurtenances thereto, including, but not by wayof limitation, utilities, plumbing, heating, electrical, air conditioning,elevator, excavation, grading, paving, roofing, masonry work, tile work andpainting, and repair work as well as any contract for the construction ofairport runways, taxiways and parking aprons, sewer and water mains, powerlines, docks, wharves, dams, drainage canals, telephone lines, streets, sitepreparation, parking areas and other types of construction on which theDepartment of Administration or The University of North Carolina enters intocontracts.

"Contractor" as used in this section includes any person,firm, association or corporation which has contracted with a State board forarchitectural, engineering or other professional services in connection withconstruction or repair work as well as those persons who have contracted toperform such construction or repair work.

(b)        A contractor who has not completed a contract with a boardfor construction or repair work and who has not received the amount he claimsis due under the contract may submit a verified written claim to the Directorof the Office of State Construction of the Department of Administration for theamount the contractor claims is due. The Director may deny, allow, orcompromise the claim, in whole or in part. A claim under this subsection is nota contested case under Chapter 150B of the General Statutes.

(c)        A contractor who has completed a contract with a board forconstruction or repair work and who has not received the amount he claims isdue under the contract may submit a verified written claim to the Director ofthe Office of State Construction of the Department of Administration for theamount the contractor claims is due. The claim shall be submitted within 60days after the contractor receives a final statement of the board's dispositionof his claim and shall state the factual basis for the claim.

The Director shall investigate a submitted claim within 90 days ofreceiving the claim, or within any longer time period upon which the Directorand the contractor agree. The contractor may appear before the Director, eitherin person or through counsel, to present facts and arguments in support of hisclaim. The Director may allow, deny, or compromise the claim, in whole or inpart. The Director shall give the contractor a written statement of theDirector's decision on the contractor's claim.

A contractor who is dissatisfied with the Director's decision on aclaim submitted under this subsection may commence a contested case on theclaim under Chapter 150B of the General Statutes. The contested case shall becommenced within 60 days of receiving the Director's written statement of thedecision.

(c1)      A contractor who is dissatisfied with the Director's decisionon a claim submitted under subsection (c) of this section may commence acontested case on the claim under Chapter 150B of the General Statutes. Thecontested case shall be commenced within 60 days of receiving the Director'swritten statement of the decision.

(d)        As to any portion of a claim that is denied by the Director,the contractor may, in lieu of the procedures set forth in the precedingsubsection of this section, within six months of receipt of the Director'sfinal decision, institute a civil action for the sum he claims to be entitledto under the contract by filing a verified complaint and the issuance of asummons in the Superior Court of Wake County or in the superior court of anycounty where the work under the contract was performed. The procedure shall bethe same as in all civil actions except that all issues shall be tried by thejudge, without a jury.

(e)        The provisions of this section are part of every contractfor construction or repair work made by a board and a contractor. A provisionin a contract that conflicts with this section is invalid. (1965, c. 1022; 1967, c. 860; 1969, c. 950, s. 1; 1973, c. 1423; 1975,c. 879, s. 46; 1981, c. 577; 1983, c. 761, s. 190; 1985, c. 746, s. 18; 1987,c. 847, s. 4; 1989, c. 40, s. 1; 1991, c. 103, s. 1; 1997‑412, s. 7; 2001‑496,s. 8(c); 2005‑300, s. 1.)