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Budget impasse threatens Virginia road projects

15 Apr 12 Virginia Department of Transportation (VDOT) has begun notifying its contractors that they must prepare to suspend work should the US state's budget impasse continue.

The suspension could impact 473 construction and maintenance projects valued at US$2.7bn (£1.65bn) across the state. These are interstate, primary, urban and secondary road and bridge improvement projects.

VDOT is providing contractors with a two-month notice to wind-down their operations on a site. The current state budget will expire on 30 June and the two month wind-down period will begin on 1 May.

VDOT said that it has to begin the work suspension process in advance of the deadline so that contractors have adequate time to stop work and get paid.

The wind down period would be suspended and/or projects would resume once a state budget is in place for the next fiscal year beginning in July 2012. Should the state budget be approved this week all projects will continue uninterrupted.

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