Supply chain interruptions are reaching critical levels and suspending work on projects. Shortages of bridge coating materials is the most recent area of concern and could be potentially catastrophic to unprepared contractors and owners. The inability to obtain materials may force painting contractors into a position where they cannot advance painting work, cannot retain painting crews, and may be asked to perform work in 2023 they had bid and scheduled for 2022.

What Can The Industry Do To Manage Risks?

Pre-bid, contractors must evaluate the availability of specified coatings and options for advance purchase and storage, confirm and lock-down material delivery timing, and account for any time and cost impacts associated with securing the materials.  Additionally, contractors may condition their performance obligations on the ability to obtain materials. Owners should consider breaking projects into small tranches, cooperating with contractors on advance purchase/storage, and be flexible and reasonable as additional disruptions and delays occur.  Owners should also take steps to ensure the bridge contractors are able to continue to operate, including providing change orders for increases in material, labor, and additional mobilization costs for work performed long after the initial schedule date. Ohio needs its skilled painting contractors in place and viable to mobilize and protect our bridge assets once materials are available.

For projects under contract, now more than ever it is imperative that contractors strictly follow the notification provisions in their contracts, including the ODOT C&MS, to preserve their entitlement to an extension of time. Under ODOT C&MS Section 108.06(B) Contractors are entitled to an excusable, non-compensable delay for: “Extraordinary delays in material deliveries the Contractor or its suppliers cannot foresee or avoid resulting from freight embargoes, government acts, or area-wide material shortages.” See ODOT C&MS 108.06(B)(3). However, the Contractor must notify the Engineer in compliance with ODOT C&MS Section 108.02(F). That means immediate oral notification and Written Early Notice within two days. Failure to follow these timelines can prejudice the contractor’s rights.

If you have questions or need assistance, our construction team is here to help.

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Photo of Aaron S. Evenchik Aaron S. Evenchik

Aaron S. Evenchik specializes in construction and real estate law, where he represents clients in both transactional and litigation matters. His cross-practice technique allows him to help resolve disputes innovatively and effectively. Aaron’s experience with transactions and handling multiple first chair litigation/arbitration matters…

Aaron S. Evenchik specializes in construction and real estate law, where he represents clients in both transactional and litigation matters. His cross-practice technique allows him to help resolve disputes innovatively and effectively. Aaron’s experience with transactions and handling multiple first chair litigation/arbitration matters enables him to better understand the goal of the deal and draft transactional documents to avoid problems and disputes. He advocates for and assists clients of all sizes to explore and close on properties, obtain zoning and to grow their businesses and meet their objectives.

Photo of Michael B. Pascoe Michael B. Pascoe

Michael B. Pascoe is a trial lawyer with experience in a wide range of commercial litigation representing both individuals and corporations in state and federal court. Mike routinely manages breach of contract claims, construction disputes, facilities management litigation, and business claims. He also…

Michael B. Pascoe is a trial lawyer with experience in a wide range of commercial litigation representing both individuals and corporations in state and federal court. Mike routinely manages breach of contract claims, construction disputes, facilities management litigation, and business claims. He also advises clients on contract negotiation, commercial lease negotiations and construction contracts. Mike frequently represents clients before the Occupational Safety and Health Review Commission.

Photo of Rob Remington Rob Remington

Rob Remington maintains a national legal practice encompassing a broad range of business disputes with a focus on complex commercial, construction and real estate litigation. Sophisticated clients with national litigation management experience describe Rob as a “class A” trial lawyer. He has a…

Rob Remington maintains a national legal practice encompassing a broad range of business disputes with a focus on complex commercial, construction and real estate litigation. Sophisticated clients with national litigation management experience describe Rob as a “class A” trial lawyer. He has a proven style when it comes to developing cases for trial, jury selection, and connecting with juries on even the most complex of issues. Rob’s practice includes acting as national construction counsel to a Fortune 100 contractor, a major international underground contractor, and the design and construction division of the largest ethanol manufacturer in the United States.

Photo of Chad J. Van Arnam Chad J. Van Arnam

216.297.4175
cvanarnam@hahnlaw.com

Chad J. Van Arnam has 22 years of construction management, general contracting, and owners representative services experience, working collaboratively to deliver well-coordinated and complex projects in commercial and healthcare markets. As Director for Parks Construction Consultants, Chad works with clients to…

216.297.4175
cvanarnam@hahnlaw.com

Chad J. Van Arnam has 22 years of construction management, general contracting, and owners representative services experience, working collaboratively to deliver well-coordinated and complex projects in commercial and healthcare markets. As Director for Parks Construction Consultants, Chad works with clients to execute construction project management and risk management procedures and tackle complex project issues and challenges head-on across all construction segments and disciplines.

He provides operational guidance and consultation in the oversight of projects from the pre-planning phase of budgeting, bidding, and resource planning through the construction and turnover phase. Chad works seamlessly with clients in developing, updating, and managing detailed project requirements and control documents, including schedules, budgets, change orders, project meeting agendas and minutes, essential tracking logs, and presentation material.

His extensive knowledge of the construction project process allows him to collaborate with clients and where necessary seamlessly with counsel for developing detailed preventative measures to avoid legal troubles during their projects.

Prior to joining Hahn Loeser, Chad served as Senior Project Manager for Sodexo USA, representing University Hospitals Cleveland Medical Center. He also served as the Self-Perform Operations Manager and Project Manager for Turner Construction, overseeing multiple multi-million dollar construction projects.