Condition precedent to contractor demand for highway construction arbitration - Claims for extra compensation
N.D. Cent. Code § 24-02-26.1
in effect24-02-26.1. Condition precedent to contractor demand for highway construction
arbitration - Claims for extra compensation.
In addition to the provisions of section 24-02-30, full compliance by a contractor with the
provisions of this section is a condition precedent to the contractor's right to demand arbitration.
If the contractor believes the contractor is entitled to additional compensation for work or
materials not covered in the contract or not ordered by the engineer as extra work or force
account work in accordance with the contract specifications, the contractor shall, prior to
beginning the work which the claim will be based upon, notify the engineer in writing of the
intent to make claim for additional compensation. If the basis for the claim does not become
apparent until the contractor has commenced work on the project and it is not feasible to stop
the work, the contractor shall immediately notify the engineer that the work is continuing and
that written notification of the intent to make claim will be submitted within ten calendar days.
Failure of the contractor to give the notification required and to afford the engineer facilities and
assistance in keeping strict account of actual costs will constitute a waiver of claim for additional
compensation in connection with the work already performed. Notification of a claim, and the
fact that the engineer has kept account of the costs involved, may not be construed as proving
or substantiating the validity or actual value of the claim.
A contractor submitting a claim for compensation under this section, personally or on behalf
of another person or entity, must do so in writing, not later than ninety days after the department
has submitted the final estimate to the contractor. The claim must state the monetary amount of
the claim, the reason for the claim, when the loss was incurred, and a short statement of the
factual situation under which the claim arose. The claim must be made under oath or equivalent
affirmation.
The director shall act on claims of less than three million dollars within sixty days after the
claim is served upon the director. The director shall act on claims of three million dollars or more
within one hundred eighty days after the claim is served upon the director. The contractor and
the director may negotiate a supplemental agreement for the claim items that are accepted by
the director, and the director shall immediately pay the contractor for any additional
compensation resulting from the supplemental agreement. The contractor may demand
arbitration on the remaining claim items within ninety days after the contractor has been notified
of the director's action on the claim.
The contractor shall make available to the department and allow the department to examine
and copy all of the contractor's records, documents, worksheets, and other data which are
pertinent to the justification of the claim and to the substantiation of all costs related to the claim.
The department shall also make available to the contractor all of the department's records,
documents, worksheets, and other data which are pertinent to the department's response to the
claim.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t24c02.pdf#nameddest=24-02-26p1Fetched: 10/16/2026