Owners and contractors should be knowledgeable in the various contract forms and their associated risks. Among the most common construction forms are 1) lump sum, 2) cost plus a fee and the hybrid, 3) cost plus a fee with a guaranteed maximum price. Each allocates risk differently and has different benefits for the parties.
A lump
The Ohio General Assembly is considering a revision to Ohio private lien law to make it clearer when projects start and end and enable title to be clear on lien rights. Under 1311.04, a Notice of Commencement (NOC) is to be recorded before a project commences and remains in place for six years (1311.04(S)). That
Contractors learned many lessons from 2020-2022 on material/labor availability, price escalation, and contractual allocations of risk. Prudent contractors will consider this in contracts moving forward.
Long gone are the days of large projects that are simply private or public. Large projects are multi-layered when it comes to funding. Federal, state, and
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
On April 1, 2020, ODOT provided direction on enforcement of COVID-19 social distancing on ODOT projects. The April 1, 2020 memo is linked HERE. ODOT project staff are directed to observe contractors’ work to confirm both six foot social distancing and look for visibly sick employees. The memo directs ODOT project staff to notify
As of Thursday, March 19, 2020, Ohio State agencies are reporting that construction projects will continue, despite the Coronavirus. The Ohio Department of Transportation (ODOT) directed office staff, who are able, to work remote, but confirmed to me personally on Monday March 16 that project work should continue. Ohio Facilities Construction Commission (OFCC) also reported
The COVID-19 coronavirus is impacting every aspect of the economy, and construction will not be exempt. Materials and deliveries may be slowed, crews quarantined and unavailable, and projects delayed. We view COVID-19 as an event beyond the control of a party (an “act of G-d”), falling within the force majeure provision of most contracts. Some
On Friday, January 24, 2020, a Lake County Common Pleas Court returned a unanimous jury verdict in favor of Hahn Loeser’s client — TRAX Construction Co. — against the Village of Reminderville, Ohio, its design professional OHM Advisors, Inc., and Village Engineer, Eugene Esser, awarding our client the full $1.1 million it sought for compensatory damages. The jury also found OHM Advisors and Mr. Esser had committed fraud, and in addition to liability for compensatory damages, awarded TRAX $375,000 in punitive damages and its attorney’s fees.
Continue Reading Hahn Loeser Obtains Unanimous Jury Verdict for TRAX Construction Co.
The most common types of “differing and changed conditions” in construction contracts deal with subsurface issues such as inadequate support, unanticipated groundwater, or unanticipated natural or artificial subsurface obstructions. But what happens when an unusual differing and changed condition, such as an endangered species, or even an unexpected burial ground, impacts your project?
Continue Reading What to Do When Your Employees Are Dive Bombed By Falcons
Steel and other construction material tariffs necessitate careful evaluation and allocation of project cost and schedule risks. For example, when steel costs increased suddenly based solely on presidential executive orders, the building trades and owners saw drastic increases in costs, shop drawing review times and delivery dates. In many instances, contract documents failed to account for such risks.
Another factor that can significantly increase the price of material, and even the market price for labor, include catastrophic weather events. When bad weather occurs, contractors may no longer be able to obtain the material at originally budgeted pricing, or secure necessary labor forces to perform the work. Labor and material shortages domino into project delays, potential liquidated damages and claims.