By most accounts 2022 was supposed to be a year of growth for the construction industry. Many forecasted that the Infrastructure Investment and Jobs Act would be the primary source of that growth across health care, public safety, and generally in the public infrastructure arena. High inflation, increased energy costs, and material shortages, however, have turned
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
Hahn Loeser is proud to be recognized by Construction Executive Magazine in the 2020 list of The Top 50 Construction Law Firms in its June issue that was just released. Ranking in the top half of the list at number 24, Hahn Loeser is the only Ohio-based firm to be included in this year’s list.
On March 28, 2020, the Ohio Facilities Construction Commission (OFCC) Executive Director Cheryl Lymon circulated a letter to contractors and design professionals detailing the obligations of businesses holding OFCC contracts during the recent COVID-19 pandemic. The letter reiterates the importance of employers complying with Ohio Department of Health Director Amy Acton, MD, MPH’s March 22,
On Friday, March 27, Ohio Governor Mike DeWine signed an order that would ensure every state contractor that is operating as an essential business is following best practices regarding social distancing, cleaning, etc. DeWine also reiterated in his afternoon press conference on Saturday, March 28 that state contractors performing essential contracts should expect inspections in
Unit pricing and other confidential information contained within your bid documents may be recognized as a trade secret under Ohio’s Uniform Trade Secret Act and similar federal laws. What does that mean? In simple terms, it means that even on a public project subject to applicable public records laws, contractors can prevent disclosure of their trade secrets to the world, including their competitors.
Continue Reading Contractors – Protect Your Confidential Information from Wrongful Disclosure
A draft bill provided to the Ohio legislature from Governor Mike DeWine aimed at addressing Ohio’s transportation infrastructure funding problem is in the works. The Ohio Contractors Association is actively promoting awareness of this development to its membership, which includes important information on the bill’s likely impact on the industry. For full details, click here
In the case of Waverly City School District Board of Education, et al. v. Triad AR, Inc, et al., the Fourth Appellate District Court found that recovery is not limited to the amount of damages claimed; rather, the owner is entitled to recover damages on each contract, apart from any recovery on the other separate and distinct contracts. This means that an owner may recover damages in excess of the total damages identified for each responsible subtrade. Upstream contractors should take care in their subcontracts to ensure that their total liability for the defective work of their subtrades – irrespective of apportioned responsibility – be covered under the subtrade’s indemnity obligations.
Continue Reading Contractors Beware: Apportionment of Damages Among Subtrades May Not Limit an Owner’s Total Damages for Construction Defects
Beware! On October 9, 2018, the Ohio Supreme Court issued a final ruling that, not surprisingly, will effectively eliminate meaningful insurance coverage for contractors, subcontractors, and owners for defective construction work. The most recent ruling reaffirms what experienced construction counsel cautioned for years; project participants cannot rely on comprehensive general liability (“CGL”) insurance coverage to remediate defective or non-conforming work. According to the Ohio Supreme Court, although defective construction work causes “property damage,” that damage is neither “accidental” nor “fortuitous” and, therefore, represents an “ordinary business risk” that members of the construction industry must manage without recourse to insurance proceeds. It does not matter that the cause of loss was defective work of a contractor or its downstream subcontractor. This decision is a significant, if not insurmountable, bar to insureds forcing insurers to defend defective work claims, pay for expert evaluations, or to fund settlements under standard coverage forms that have permeated the Ohio construction industry for decades. The Court held that, under the terms of these form insurance agreements, no downstream insurance coverage exists for damages arising from defective work of a subcontractor. Ohio Northern University v. Charles Construction Company, et al. (Ohio Supreme Court, October 9, 2018)
It is critical that industry participants understand the far-reaching and long-term effects of the Ohio Northern University decision and take prompt action to evaluate and mitigate risk or loss. The decision reaffirms and expands the Supreme Court’s 2012 ruling in Westfield Ins. Co. v. Custom Agri Sys., Inc. to the detriment of Ohio’s construction industry participants since it involved a contractor’s policy, and it denied coverage under standard “products completed operations” (“PCOC”) endorsements. For years, insurance agents and insureds’ assumed PCOC endorsements and related policy provisions covered losses arising after substantial completion to the extent the cause of loss was a subcontractor or other lower tier’s defective work. The October 2018 Supreme Court ruling will also impact available insurance coverage for work performed out of state if a contractor’s or subcontractor’s CGL policies are governed by Ohio law.
Continue Reading Protect Your Bottom Line on Ohio Construction Projects
On October 9, 2018, the Ohio Supreme Court ruled that general liability insurance purchased by a contractor does not cover the defective work of its subcontractors. As a result, even with additional subcontractor coverage, a commercial general liability (CGL) policy does not cover downstream defective work.
Continue Reading Ohio High Court Rejects Coverage for Defective Work of Subcontractors