| Lawsuit Challenges CPS Prevailing Wage Rule |
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8/31/2009 Link
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On Friday, August 28, the Ohio Valley Associated Builders and Contractors and the Independent Electrical Contractors of Greater Cincinnati filed a lawsuit in the Hamilton County Court of Common Pleas against the Cincinnati Board of Education seeking to enjoin the Board from implementing its Responsible Bidder Resolution, which amended its Lowest Responsible Bidder policy. Submitted by Raymond D. Neusch.
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| Ohio Appellate Court Examines Duties on Inspection for the Existence of Utility Lines |
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8/31/2009 Link
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A decision from the Ohio Court of Appeals (Eighth Appellate District--Cuyahoga) clarifies the duties owed by excavators, designers and developers in relation to locating existing utilities. In Opincar v. F.J. Spanulo Constr., 2008 Ohio 6286 (Ohio App. 2008), a residential owner, the Opincars, acting as both developer and general contractor, contracted with Spanulo for the excavation, foundation and concrete work on a project that included the addition of a garage. After the project was complete, the local utility informed the Opincars that the garage was built over a gas line and had to be removed. Submitted by C. Michael Shull III.
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| Roles May Evolve Under Performance Bond Defaults |
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8/31/2009 Link
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With a dearth of active projects, contractors have become very aggressive on bids, leading to winning bids that leave much money on the table and that may not sustain the business long term. Over time, the decreased revenue from low bids combined with decreasing access to credit may lead to a tremendous number of defaults. Many such defaults will occur on projects with performance bonds. The triggering of obligations under performance bonds creates interesting dynamics and options for the surety, owner, and contractors. Submitted by Eric D. Foerg.
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| Mortgagees in Indiana Have Priority Over Mechanic's Lien Holders Improving Land for a Residential Subdivision |
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8/31/2009 Link
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Prior to the economic downturn, there was no shortage of residential subdivisions being developed and built in Indiana. One issue which emerged from such construction was the relative priorities afforded to those who funded the development and those who made the improvements to the development prior to the construction of any residences where the owner failed to pay. On August 10, 2009, the Indiana Court of Appeals resolved this issue in Lincoln Bank v. Conwell Construction, et al. The Court of Appeals held that the mortgagee had priority over the lien claimants. The property was platted and developed as a residential subdivision. The general contractor agreed to construct improvements, infrastructure, and storm, sanitary and water utility structures. In furtherance of its obligations, the general contractor entered into multiple subcontracts for the construction of concrete curbs and gutters, subsurface curb drains, and asphalt paving. The mortgagee funded the development and recorded its mortgage in 2006. The four lien claimants later filed mechanic’s liens in 2007. Submitted by Brian M. Falcon.
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| Preserving Your Delay Claim (Just in Case the Project Runs Long) |
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8/17/2009 Link
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Nowhere does Ben Franklin's often repeated advice to a young craftsman to "remember that time is money" ring more true than on the modern construction project. Significant delays and adverse conditions encountered by a general contractor often lead to less profit and/or no profit on a job. If you start cobbling together documentation of a possible delay claim as the project slowly draws to a close, then you have probably delayed far too long. Submitted by Dean Brackenridge.
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