| Ohio Department of Taxation May Waive Penalties for CAT Taxpayers |
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July 31, 2008 Link
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The Ohio Department of Taxation (ODT) recently issued an information release (Ohio Tax Information Release No. CAT 2008-01, 07/25/2008) explaining its voluntary disclosure program with regard to the commercial activity tax (CAT). Submitted by Javan Kline and Jeremy Hayden.
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| Queen City Square Project Begins |
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July 28, 2008 Link
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Although groundbreaking ceremonies took place last month, the real work began last week on the Great American Insurance Building at Queen City Square as crews from O’Rourke Wrecking Company began demolishing the existing parking garage. At 660 feet and 40 stories, the new skyscraper will be Cincinnati’s tallest building, eclipsing the depression-era Carew Tower. The project, which is being developed by Eagle Realty Group, a unit of Western & Southern Financial Group, has been discussed for more than 20 years. Submitted by Scott Gurney.
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| Court Grants Surety's Demand for Deposit of Collateral After Reserve Established |
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July 24, 2008 Link
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In a case decided in mid-July, 2008, the US District Court in Kansas held that indemnitors were obligated to deposit collateral with a surety which had established a reserve to cover claims that had been both paid and asserted. The court rejected the demand by the indemnitors to examine the actions of the surety under a “good faith” standard since only the demand for specific performance was before the court and not the demand for actual indemnity. Fidelity & Deposit Company of Maryland v. D.M. Ward Construction Co., Inc. 2008 U.S. Dist. LEXIS 53971 (District of Kansas July 14, 2008) Submitted by Dave Olson.
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| “Natural Consequences” of Delay |
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July 22, 2008 Link
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By statute in Ohio, if an owner causes a delay, the owner cannot invoke a “no damages for delay” contract clause to prevent a contractor from recovering damages arising out of that delay. O.R.C. §4113.62. The statute does not, however, expressly address whether a contractor can recover damages due to acceleration or loss of productivity costs when the project completion date has not been changed but owner-caused impacts occurred during performance. The question remained whether a “no damage for acceleration” or “no damage for loss of productivity” clause would be enforceable in light of §4113.62. Submitted by John Higgins.
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| Ohio BWC Introduces More Changes to Affect Employers |
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July 18, 2008 Link
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There may be light at the end of the tunnel for thousands of Ohio state funded employers who have seen their workers’ compensation premiums skyrocket since the implementation of the MIRA reserving system in 2002. The Ohio Legislature addressed employer’s concerns about the veiled MIRA system in House Bill 100, which went into effect in 2007. Legislators mandated that the BWC implement a more transparent reserving system by the 2008 rate year, which began July 1, 2008. Submitted by Noel Shepard.
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| Compliance with Ohio Prevailing Wage Laws |
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July 9, 2008 Link
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On June 13, 2008, the Franklin County Court of Appeals held that a county board of commissioners had properly rejected a contractor’s bid for painting work on a prevailing wage project even though the contractor submitted the lowest bid. See Associated Builders & Contractors of Central Ohio v. Fraklin County Board of Commissioners, 2008-Ohio-2870. The board claimed the contractor failed the board’s “Quality Contracting Standards”, which disqualified bidders who were “debarred from public contracts or found by the state (after all appeals) to have violated prevailing wage laws more than three times in a two-year period in the last ten years.” Submitted by Gene Droder.
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| Amendment to Tennessee Statutes Regarding Retainage for Construction Contracts Becomes Effective July 1, 2008 |
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July 2, 2008 Link
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On April 10, 2008, The Tennessee General Assembly enacted legislation amending the existing Tennessee statutes governing retainage funds withheld pursuant to construction contracts in Tennessee. The changes become effective on July 1, 2008 and represent an effort to clarify some questions that had arisen in the wake of the significant revisions to the Tennessee Mechanic’s and Materialman’s Lien statute and the Prompt Pay Act that were adopted in 2007. Submitted by Tim Crenshaw.
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