Warranties provided to project owners are often some of the most-negotiated provisions in a construction contract.  What will the warranties cover?  How can they be enforced?  Perhaps most importantly: how long will they be in force? Arguments regarding one recent construction project in Ohio demonstrate the importance of knowing whether contractual language does, or does not, create a warranty—and how long the project owner can attempt to enforce it. Ohio, like many states, has enacted a statute of repose applicable to construction matters: R.C. 2305.131.  In essence, the ..read more

When it comes to risk mitigation for property investors, title insurance may be the best kept secret in the industry. While the concept of title insurance is well known and most investors understand the basic coverage offered by a title insurance policy, many don’t know about the optional – and valuable – coverage that may be available to them. Litigation over property rights occurs daily, and often the risk at issue could have been covered by title insurance. Even if you haven’t purchased a title policy for your own benefit, if you have a mortgage, you have purchased title insurance for your ..read more

On January 26, 2024, the U.S. Department of Labor’s (“Department”) Office of Solicitor (“SOL”) published its FY2023 Enforcement Report (“Enforcement Report”). The report provides an insight into the Department’s labor and workplace safety initiatives and enforcement focus. The messaging in the Enforcement Report is consistent to what Hahn Loeser & Parks LLP has seen and been communicating to its clients for the past several years—the Department, under the current administration, is focusing on announcing enforcement goals and then compelling proactive compliance through enhanced enforcemen ..read more

Full Article in Properties Magazine At the most basic level, contracts serve to assign, allocate, and mitigate risk. Parties—unsurprisingly—are typically unwilling to adopt greater risk than required, and often look to assign most of the risk to the other contracting party. While understandable, this approach may have unintended costs. For the most part, the general risks associated with a construction project are commonly understood and accounted for in broad form provisions. Such provisions alone, however, may not effectively address the unique risks associated with the rise in material esca ..read more

Full Article in Properties Magazine Allocating the Risks and Benefits of Green Construction Sustainable (or “green”) construction practices and the trend toward green buildings are here to stay, driven not only by federal, state, and local legislation, tax credits, and incentives, but also by consumer, corporate, and shareholder demand.  If they haven’t already, owners, architects, developers, and construction companies will be required to make use of new technologies, new materials, and new practices to keep pace with increasing demand for green construction – and to reap the economic an ..read more

On August 1, 2023, U.S. Citizenship and Immigration Services (USCIS) released a revised Employment Eligibility Verification form, commonly referred to as the I-9 form. To download a copy of the new I-9 form click here. While the new I-9 form may be used immediately, employers have until October 31st to implement changes necessary for the use of the new I-9 form. After October 31, 2023, employers who fail to use the new I-9 form will be subject to penalties enforced by U.S. Immigration and Customs Enforcement and the Department of Justice. Employers should not ask current employees who have a p ..read more

Are you a contractor that would like to employ 16 or 17-year-olds (“minors”)? House Bill 33 (establishing the state budget for 2023-25) permits minors to work on construction sites in certain limited situations. Note! There is nothing in the new law that requires contractors to hire minors – or to engage subcontractors who hire minors – to work on construction sites; the bill only prohibits the Director of Commerce from passing any rule that would prohibit minors from working on construction sites in certain situations. Owners and contractors that do not wish to have minors on the jobsite shou ..read more

Original article in June 2023 issue of Properties Magazine According to the Pew Research Center, the majority of Americans view climate change as a major threat and two-thirds believe that the government and corporations should be doing more to address climate change. Young Americans, in particular, are interested in curbing their carbon footprint and living sustainably. A 2022 Bentley-Gallup Force for Good study found that it is “extremely important” to 77% percent of Americans aged 18-29, that businesses operate in a sustainable manner. Moreover, 80% of young Americans say they are willing t ..read more

When reviewing a contract, how often have you had the following thoughts: “That provision is so one-sided, there’s no way it will be enforced the way it’s written!” Or “I won’t worry about negotiating that provision; a court would never enforce it as written.” A recent decision from Ohio’s Tenth District Court of Appeals illustrates the risks of that kind of thinking.  The procedural history of the dispute is complex, but worth digesting for one important reminder: it’s always better to negotiate troublesome provisions yourself rather than counting on a judge or arbitrator to do it for yo ..read more

Owners and contractors should be knowledgeable in the various contract forms and their associated risks. Among the most common construction forms are 1) lump sum, 2) cost plus a fee and the hybrid, 3) cost plus a fee with a guaranteed maximum price. Each allocates risk differently and has different benefits for the parties. A lump sum or stipulated sum contract is common. In this contract form, an owner has a set price for all work contained in the contract. In its simplest form, the owner knows the price of the contract work, and that the owner will receive the building described in the ..read more