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. […]
risk management Archive
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 […]
Certain Contract Indemnity Provisions are Unenforceable
It has become increasingly common for those in the construction industry to encounter indemnity provisions in their contracts. Indemnity provisions are agreements where one party (the promisor) agrees to protect and hold harmless the other party (the promisee) from liability arising from certain risk. These provisions can shift the risk of liability from a negligent […]