Recent cases from the Supreme Courts of Ohio, Kentucky and Indiana raise the issue whether Contractors get any liability coverage at all when they purchase commercial general liability (CGL) policies. The Ohio and Kentucky opinions may be reversing coverages that contractors expected to have for at least the last 25 years.
Ohio courts are taking a strict stance on when contractors must pay subcontractors. It is common for subcontract agreements to tie contractor’s payment to subcontractors to the contractor’s receipt of payment from the owner. Two common methods for dictating the payment of subcontractors are “pay-when-paid” and “pay-if-paid” clauses.
The DBL Construction Group has reported on the pioneering Ohio Construction Reform Act (OCR) since its enactment in 2011 and throughout its implementation during 2012. In short, OCR transformed Ohio’s outdated approach to public construction, which previously permitted only multiple prime contracting, by allowing several alternative delivery methods.
Target Value Design (TVD) is a tool that is integral to the implementation of Integrated Project Delivery. It is a collaboration process in which key design and construction participants develop an understanding of an owner’s program and purpose.
Those in the construction industry typically understand the basics of contracts. Even the word “contractor” reflects their regular use and experience with them. Nevertheless, the question of whether acceptance of a bid creates a binding contract comes up frequently. This question is not always answered easily, but a look at the legal nature of contracts helps answer it.
Construction Manager At Risk is an alternative project delivery method embraced by both public and private sector owners. Over the last two years, it has gradually gained traction in the commercial construction market. This method provides several benefits to the owner that are not otherwise available with other project delivery methods.
In the homebuilding business in Cincinnati and Northern Kentucky, builders are quite aware of the perils of constructing homes on steep hillsides and fill sites. As a result, they ordinarily consult with a soils engineer during or before excavating for foundations on steep hillsides and fill sites with “soft” soils.
Every construction project incurs setbacks. Such setbacks may result in delayed performance by one or more trades. Such delays may be inexcusable, particularly if the trade caused the delay. Others may be “excusable” delays. Excusable delays allow the trade to extend its Contract Time.
Construction projects seldom proceed without commercial general liability (CGL) insurance. Obtaining CGL coverage is one of the easy decisions in the construction process. These policies generally cover bodily injuries and property damage arising out of the premises, operations, products, and completed operations. But exactly how broad are CGL policies?
You're Invited to LCI's Integrated Project Delivery: A Research Based Approach Seminar on April 22, 2013
You’re invited to LCI’s Integrated Project Delivery: A Research Based Approach Seminar on April 22, 2013, at the Crowne Plaza Hotel, 5901 Pfeiffer Road, Blue Ash, OH 45242. Registration begins at 1:00 p.m. and the program runs from 1:30 – 4:00 p.m.
Public-sector construction contracts can provide a wide berth of benefits but may also present a variety of practical and legal pitfalls. Such projects tend to be more financially stable, an important incentive in the current economy. However, contractors may be subject to the political preferences of the public entity sponsoring the particular project.
Wrap-up insurance coverage, commonly known as controlled insurance programs (CIPs), is a type of insurance policy used in construction projects where the developer, general contractor, and all of the subcontractors became named insureds under a single general liability policy. Under this type of policy, one party usually procures insurance on behalf of other parties working on the project.
Selecting a project delivery method is a critical first step for owners beginning a construction project. Owners now have more options for project delivery. These range from the traditional design-bid-build to construction management to design-build and integrated project delivery. Each project is unique, and owners should fully analyze their options before beginning a project.
An important component to effective delivery under Integrated Project Delivery (“IPD”) is management of the design process. This can be most efficiently accomplished through pull based design.
You’re invited to attend the Lean Construction Institute Ohio Valley Chapter’s Learning Last Planner System with Villego Seminar on February 18, 2013.
Building a new home or renovating an existing home can be a very exciting time for homeowners. But sometimes the contractor’s work does not quite live up to homeowner’s expectations. What are the homeowner’s options? May the homeowner simply hire someone else to fix the problem? What legal action can the homeowner take? To what rights are the contractors entitled?
The economic downturn that began with the subprime mortgage crisis in 2007 and has continued through the present has not spared the construction industry. With the private construction market struggling, many contractors refocused their business toward public projects. The increased importance of public projects to contractors continues today. For these reasons, this article provides a brief review of a fundamental public construction law in Kentucky, its “Little Miller Act.”
DBL attorney quickly and efficiently obtains release of improper mechanics’ lien filed against local construction company by a subcontractor.
Classifying workers as employees or independent contractors has always been a difficult task. But recently the IRS and the Department of Labor have been cracking down on companies that wrongly classify their workers.
The Ohio Department of Commerce recently adopted a new residential building code that should lead to increased savings and safety for homeowners, but add compliance concerns for homebuilders. The new code goes into effect January 1, 2013 and represents “a monumental update” from the current code, which was last modified in 2003, according to Corey Roblee, a manager with the International Code Council, the non-profit that designs building codes.
Since 1966, Ohio courts have required builders to perform in a workmanlike manner when constructing new homes. Ohio interprets the term “workmanlike manner” as the use of ordinary care in performing work on, and selecting materials for, a home. Thus, the implied warranty puts a duty on contractors to work as a reasonable and competent contractor would in the same situation.
The general contractor for a project may often find itself in a vulnerable position. One such instance of this can arise as the contractor submits its bid and contracts with the owner of a project. In arriving at its bid, the contractor obviously must consider the cost of its performance. The determination of the cost of performance necessarily includes calculating the sum of the subcontractors’ bids for their work.
You’re invited to the LCI Ohio Valley Chapter’s Benefit in Lean Series on August 7, 2012: Implementing Lean Design & Preconstruction.
The Kentucky Court of Appeals just issued an opinion on April 13, 2012, hammering home the strict requirements imposed on developers that must be met in order to make a subdivision street private (as opposed to a public road).
With Integrated Project Delivery’s (IPD’s) promises of high-quality, timely, and economical projects, why are budget-strapped governments not the first in line to see whether IPD lives up to its reputation?