risk management Archive

Surety Gets Burned by Not Making Article 8 Demand

The Court of Claims has ruled that the State of Ohio “Article 8” dispute resolution process applies to the surety in a takeover situation following a contractor default (Berkley Insurance Company v. Kent State University, Case No. 2018-00579JD). The trial court found that the surety had not timely initiated the “Article 8” claim process, and […]

Construction Managers Need to Watch Out for State’s Supplementary Conditions

The state of Ohio is regularly utilizing a “best value” approach to select “at risk” CMs on a subjective basis to perform work on a “cost plus” Guaranteed Maximum Price (GMP) basis. One frequent area of differing interests surrounds the establishment of a GMP after the contract has been awarded and significant pre-construction compensation paid. […]

State Contract Requires CMs Assume Uninsurable Risk?

The OFCC prepares form contract documents that are utilized on the State of Ohio projects that it administers. Recent changes to the CM-at-risk contract with respect to insurance are giving heartburn to the construction industry that bids that work. Section 10.6 now requires the CM to defend the OFCC with counsel specifically approved by the […]

Ohio Mechanic’s Lien Claimants Can Recover Legal Fees

Those perfecting mechanic’s liens on Ohio construction projects are often frustrated by the costs of doing so. Many do not appreciate that Ohio has a statute – R.C. 1311.16 – that provides in relevant part: When judgment is rendered…the court may allow reasonable attorney’s fees to be paid out of the fund realized for lien […]

Ohio’s Statute of Repose Does Not Apply to Breach of Contract Claims

The Third District Court of Appeals (Seneca County) recently ruled that Ohio’s statute of repose (R.C. 2305.131) does not apply to breach of contract claims. See New Riegel Local School District, Board of Education and State of Ohio v. The Buehrer Group Architecture & Engineering, Inc., 3rd Dist. Seneca Nos. 13-17-03, 13-17-06, 2017-Ohio-8521. The case […]