SCC Banner Image  |   |   |     Tyler Building
Division of Utility and Railroad Safety


Underground Utility Damage Cost Mediation Process Guidelines
for the Pilot Period of 24 months beginning July 1, 2007

For more than 15 years, damage prevention stakeholders in Virginia have worked tirelessly to reduce damage to underground utility lines. Their efforts have resulted in one of the most effective damage prevention programs in the country. The desire and partnership of these stakeholders to work together and resolve issues of common interest continues to be one of the cornerstones of this program.

The recovery of utility damage costs has been an issue of some controversy and has threatened to harm the partnership Virginia stakeholders have worked so hard to establish. After much deliberation and discussion, a group representing utilities and contractors have reached consensus on a non-binding Damage Cost Recovery Mediation Pilot program. The purpose of this program is to gauge the effectiveness of a mediation process to help contractors and utilities in Virginia reach resolution on disputed utility damage cost claims without expensive, frustrating, and time-consuming adjudication through the courts. A mediation process facilitated by a neutral person affords parties who understand their dispute better than anyone to reach a “win-win” resolution as opposed to issues being resolved by a judge or jury. This saves time and money and preserves the parties’ relationship by improving communication. Better relationships amongst contractors and utilities will continue to strengthen the partnership in Virginia’s damage prevention program...