risk management Archive

ConsensusDocs Adopts Master Subcontract + Project Work Order Forms

Contractors and Subcontractors who regularly work together frequently favor a Master Subcontract Agreement that sets forth the basic legal terms of the relationship regardless of Project, and an individual Project Work Order setting forth the scope and price on every discrete job. This saves time and hassle wrangling about subcontract language on a project-by-project basis. […]

Relief from Old Construction Defect Claims: Statute of Repose Applies To Tort and Contract Claims

There are two ways in Ohio that a claim for building defects is barred by time: the statute of limitations and the statute of repose. The statute of limitations is the period of time for a party suffering harm to file a lawsuit. In Ohio the contract statute of limitations on construction claims was 15 […]

Do I Need a Bond on My Next Project?

Many owner-developers choose to forego requiring a Performance and Payment Bond from their contractors in the hope of shaving another 1%-2% from the project cost. However, current market conditions suggest that owners rethink that decision. The current industry environment consists of busy contractors competing for a limited labor pool, and struggling to meet ambitious project […]

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. […]